Prompt Payment Initiative
The Prompt Payment Initiative outlines a series of best payment practices that businesses commit to follow. By upholding these standards, businesses can enhance their credit scores and foster a positive payment history. Payment interactions between businesses and reporters can be facilitated through Formsome. To simplify compliance while maintaining the initiative's efficacy, these seven core standards serve as the primary pillars:
- The payer must be a legally registered entity under a country's jurisdiction.
- Pay all counterparties on time within contractual terms.
- Provide clear explantion on key payment terms, including a dispute resolution process.
- Notify creditors at least one month in advance from forseeable payment delays.
- Make right on any reported (or known) poor payment practices.
- The business signatory contact is available for payment related queries.
- Accept interest imposed on overdue payments within means of the commercial law.
Benefits
Improve your Credit Score through Payment Ratings and Reviews. Suppliers, employees, customers, creditors and investors will notice the Prompt Payment Signatory badge displayed on your Formsome business profile. It is a public display of your business's stance towards a good payment culture.
Your business will also be able use Formsome's Prompt Payment Badge on external documents when requesting payments from customers, leveraging on Formsome's payment review to discourage late payments practices.
Suspensions & Removals
Non compliance with the standards listed above can result in termination of your subscription, resulting in your business name being dropped from the Signatory List.
Becoming a signatory is currently free. Please note that your business cannot renounce from the pledge but you may choose not to renew at the end of a one year cycle.
Become a Signatory
Work towards a timely payment culture and elevate your business's credit standing.
Currently available to businesses in United Kingdom, Singapore, Australia and New Zealand.