PROMPT PAYMENT CODE PRINCIPLES
Our Commitment
23red Limited is signed up to the Prompt Payment Code and has had a 30-day payment procedure for more than 15 years.
The Prompt Payment Code (PPC) sets standards for payment practices between organisations of any size and their suppliers and is enforced by the PPC Compliance Board. The Code covers prompt payment in addition to wider payment principles.
As an SME, 23red understands the importance of timely cash collection to other SME businesses which make up the majority of our supply chain. We would encourage all of our supply chain to adopt the Code to help support small and medium sized business together.
As a signatory of the PPC, 23red undertakes to:
1. Pay suppliers on time
· within the terms agreed at the outset of the contract;
· without attempting to change payment terms retrospectively; and
· without changing practice on length of payment for smaller companies on unreasonable grounds
2. Give clear guidance to suppliers
· providing suppliers with clear and easily accessible guidance on payment procedures
· ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
· advising them promptly if there is any reason why an invoice will not be paid to the agreed terms
3. Encourage good practice
· by requesting that lead suppliers encourage adoption of the code throughout their own supply chains
Payment Terms and Accounts Payables Process
Our standard payment terms are 30 days, endeavouring to pay Micro-entities and sole traders within 10 days.
In order to process invoices promptly, invoices should:
· be raised and delivered on time in accordance with the contract or a reasonable time frame from goods/service delivery date
· be for the correct sum, and for no more than the purchase order (PO) value where one has been provided
· include the date, supplier name, contact details and bank details
· quote a valid PO reference where provided, in a PO12345 format. Where a PO has not been provided, the purchaser name should be stated
· be emailed to accounts@23red.com. Invoices can be posted, however as of March 2020 staff are working remotely due to the COVID-19 pandemic and therefore email is encouraged to ensure prompt payment. The postal address for invoices is currently:
23red Limited
Victoria House
1 Leonard Circus
London EC2A 4DQ
United Kingdom
Note: it is the supplier’s responsibility to provide correct bank details and email addresses in order to facilitate payment.
In order to facilitate Micro-entity and sole trader 10 day payment terms, suppliers should email their invoice on Friday by close of play to the accounts@23red.com inbox as well as to the purchasing contact email address.
Payment Terms on Public Sector Sub-Contracts
For any sub-contractors we engage with on public sector contracts, 23red will pay the sub-contractor within 10 working days of having received funds from the end client, as long as the correct accounts payable process has been followed.
The Government Prompt Payment Policy, (at the time these principles were published) commits to paying 90% of undisputed and valid invoices from SMEs within 5 days and 100% of such invoices within 30 days. This means our sub-contract payment terms should in the majority of cases result in payment terms of less than 30 days. In any instances where end client funds are delayed beyond 15 days from the date of invoicing, 23red will update sub-contractors accordingly.
Our Payment Methods
23red process supplier payments weekly and pay our suppliers using BACS (Bank Automated Clearing System) only. Payments ordinarily clear supplier accounts on Fridays.
23red is not responsible for any delays in payments being made which are outside of our control e.g. where our Banking Provider suffers from technical failures or otherwise delays the processing of such payments for reasons including, but not limited to, security checks.
Invoicing and Payment Disputes
23red will endeavour to advise suppliers promptly of any disputes or reasons why an invoice will not be paid in accordance with the agreed terms. Invoices that are subject to dispute will not be paid until resolution of the dispute. Once resolved, payment will be made in accordance within the terms of this policy and the Code, on the next scheduled payment run.
Complaints and Contacts
Complaints in relation to the processing of payments and/or invoices should be emailed to accounts@23red.com or made by telephone on 020 7843 5900.
Version Control
Last updated January 2024.