One of the greatest challenges that our SME clients often face is access to cash flow – which also includes dealing with invoices that are locked in extended payment terms. This places immense pressure on their ability to operate efficiently.
Cash is king. At ProfitShare Partners, more than the short-term capital solutions that we offer, we’ve committed to the Prompt Payment Code initiated by the National Small Business Chamber (NSBC).
“There is immense value in getting paid on time – especially for small businesses. It’s not easy for SME owners and entrepreneurs to stay afloat because they often rely on one payment to take them through to their next order. We understand this challenge, which is why we’ve committed to the Prompt Payment Code,” says CEO of ProfitShare Partners Andrew Maren.
What is the prompt payment code?
The National Small Business Chamber (NSBC) is championing the importance of Big Business and Government paying SME suppliers within 30 days. SMEs, as defined in the Codes of Good Practice, are those entities with an annual turnover of R35m or less.
Becoming a signatory is a commitment to paying SMEs on time – within 30 days once a valid invoice is received; giving clear guidance on payment terms to suppliers – notifying SME business owners within 7 days if their invoice is incorrect; and encouraging good practice by promoting the codes in their own supply chains.
To find out more about the Prompt Payment Code, visit the NSBC FAQs for more information.
To show your support for the Smaller Business Sector and your commitment to growth, click here and become a signatory today!
