Mellor Financial Management of Halifax, and MacComms, a Leeds-based PR agency, have launched a prompt payer initiative to try to ensure that suppliers of small businesses, including freelancers, are paid promptly. The prompt payer initiative commits to making payments to suppliers within 7 days.
The initiative goes considerably further than the 2008 government launched Prompt Payment Code. Signatories make their commitment to settle 95% of invoices within 60 days, with the aim of reducing this to 30 days as a norm. The Code now lies with the Small Business Commissioner’s office, working towards drawing together all payment plans and initiatives under one agency.
Is it working? With late payments more than halved since the launch, the answer is definitely yes – and now further moves are being made locally, it’s even better news for small businesses, who are recognised as our economy’s backbone.
Martin Mellor, founder and managing director of Mellor Financial Management, said:
“The Government claims that the Prompt Payment Code sets the gold standard in payment terms and plays an important role in bringing about a culture change in payment practices, but payment within 60 days is still far too long for most small businesses, which is why with our code we are committing to paying all suppliers within seven days.
Cash flow is the life blood of businesses and whilst everyone is under pressure during the Covid-19 outbreak, we need to do what we can to support small businesses and the local economy.”
Founder and managing director of MacComms, Ellie MacDonald, commented:
“I changed my business model to remote working and utilising freelancers over a year ago, so it’s largely business as usual for us. Whilst most people are battening down the hatches and cutting costs, we hope that by paying people within seven days wherever possible, these suppliers will continue to spend and keep further small and local businesses afloat during the unprecedented times.”
MacComms is a five-year old multi-award-winning PR agency run by Ellie MacDonald with Martin Mellor as outsourced finance director. Mellor Financial Management, run by Yorkshire Accountancy Awards advisor of the year, Martin Mellor, offers accountancy support and training.
Formed in April 2015, MacComms is founded and run by leading Leeds-based award-winning businesswoman Ellie MacDonald, who has 12 years’ PR and marketing experience.
Ellie is supported by finance director, Martin Mellor with a team of expert freelancers in public relations, marketing, communications, event and social media management.