UK trade body calls on industry to sign up to Prompt Payment Code to help protect businesses
Late payment is becoming a big problem for the UK games industry and is having damaging repercussions for developers’ cash flows, a new report from Tiga has revealed.
Members from the trade body said that late payments had become a huge problem for their companies, with 26 per cent of developers and digital publishers stating this had held back their businesses from growing.
Tiga also said that without prompt payments from companies, some developers could end up closing.
As a result, the trade organisation has called on studios and publishers to sign up to the Prompt Payment Code, administered by the Institute of Credit Management, to help ensure all companies receive their money on time.
Signatories to the code are required to pay suppliers on time within the terms of the contract and without attempting to change the payment terms, give clear guideance to suppliers on payment procedures, and encourage good practice throughout their own supply chains.
“Late payment of commercial debt hurts small developers and digital publishers,” said Tiga chairman Jason Kingsley.
“It is imperative companies pay on time and inform others when there is a problem. Late payment is an issue that can be ameliorated by the games industry itself and Tiga will play a key part in addressing this challenge.”
Tiga CEO Richard Wilson added: “Tiga aims to strengthen the UK games industry. Reducing the incidence of late payment of debt is an important way of achieving this goal. So we are taking the lead in tackling this issue by encouraging games businesses to sign the Prompt Payment Code.
“Signatories to the Code commit themselves to adopt best practice payment procedures. Together we can improve the payment culture in the UK games industry.”
For more information on the Prompt Payment Code, visit the official website here.