A new portal to host the Prompt Payment Code of Conduct and ensure businesses are paid on time will go live in the first quarter of 2015.
The initiative is backed by the Banking and Payments Federation of Ireland (BFPI), small business representative groups and the Irish Institute of Credit Management (IICM).
Three main focuses of the code are: to ensure best practice between businesses and suppliers; to improve cash flow between businesses; and to drive a change in payment culture.
Organisations who sign up to the code will undertake to pay suppliers on time within the terms of a contract or in accordance with legislation.
Under the legislation firms will be obliged to pay suppliers under the terms of a contract or within 30 working days.
“This is a significant step towards addressing the culture of late payments in Ireland,” said Business & Employment Minister Ged Nash TD.
“Anyone in business knows how vital being paid promptly for your goods and services is. Businesses that choose to sign up to Code are sending out a real signal that they will stick to their payment terms.
“This certainty on payment inspires confidence across the supply chain. This confidence stimulates both investment and growth and is good for suppliers, customers and jobs,” Nash said.
Payment image via Shutterstock