We are proud to announce that we have been awarded the Fair Payment Code Gold Award by the Office of the Small Business Commissioner (OSBC) on behalf of the Department for Business and Trade.
Fair Payment Code
The Fair Payment Code is a Government-backed series of awards that reward businesses for adopting fair payment practices for suppliers, specifically focusing on small suppliers. The objective of the awards is to set standards for payment practices and to encourage businesses to improve their payment procedures.
The awards are open to businesses of all sizes that have a UK registered address, including Community Interest Companies (CIC) , charities and universities.
Award Categories
The Fair Payment Code comprises three categories – bronze, silver and gold, with gold being the highest tier that a business can be awarded.
The Bronze award is presented to businesses that pay at least 95% of all invoices within 60 days, whilst the Silver award celebrates those that pay at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days.
The Gold category celebrates businesses that pay at least 95% of all invoices from suppliers within 30 days.
Each business must reapply for the award at the end of their two year period, to ensure that they still meet their award level.
Principles
In addition to the award categories, the Fair Payment Code imposes a set of principles that all businesses must abide by in three areas.
Be Clear
- Establish clear payment terms, to ensure suppliers understand payment terms in contracts
- Agree payment terms with suppliers in writing before work begins
- Communicate where payment may be delayed or outside of agreed terms
Be Fair
- Strive to pay suppliers within the terms of the Code and in a reasonable timeframe
- In the event of delayed payment of invoices causing damage to a supplier’s business, accept consequences
- Avoid disputes, or pay undisputed portions of invoices within terms and resolve the disputed portions
Be Collaborative
- Work to avoid conflict
- Acknowledge the importance of embedding conflict avoidance mechanisms in contract management
- Encourage best practice for fair payment across your industry
Ballyhoo & Application Process
Due to how prestigious the awards are, there is a sophisticated application process.
Firstly, we submitted our Supplier Payment Policy for Ballyhoo Ltd, detailing our payment terms when working with suppliers.
We were required to submit data on the percentage of all invoices paid within 30 days. We are extremely proud to say that we have paid 98% of our suppliers within 30 days for the last 6 months, meaning we meet the criteria for the Gold award of paying 95% or above of all invoices.
We also had to provide details for two references, including one small business with fewer than 50 employees, who would be contacted by the OSBC team to confirm that the information that we had provided is correct.
Upon reviewing the evidence and information provided, we have been awarded the Gold Award for the high standard of our payment practices.
This achievement showcases our dedication to building and maintaining strong relationships with our suppliers, as we believe that fair and prompt payment is essential to building trust with our business connections.
We feel as proud as punch to be recognised for our commitment to our business practices and supporting our supplies with their growth and success.
