TIGA, the trade association representing the UK games industry, is
today encouraging companies operating in the videogame sector to sign up to the
Prompt Payment Code in order to tackle the problem of late payment of
commercial debt.
TIGA members report that late payment is a problem for their
businesses. TIGA research shows that 26 per cent of developer and digital
publishers believe that late payment has held back their business from growing.
The issue of late payment can have damaging repercussions for
developers' cash flows and it also causes many man hours being wasted in
chasing payments. Without prompt payment, some developers owed money could end
up closing.
Have your say about late payment by tweeting us or commenting on our facebook page and tell us:
-
Have you
experienced late payment of debt? - Do larger
businesses pay more promptly than smaller ones? - What impact has
late payment had on your business?
TIGA is calling on companies to sign the Prompt Payment Code,
administered by the Institute of Credit Management (http://www.promptpaymentcode.org.uk/).
Signatories to the Prompt Payment Code undertake to:
Pay suppliers on time
-
within the terms agreed at the outset of the
contract - without attempting to change payment terms
retrospectively - without changing practice on length of
payment for smaller companies on unreasonable grounds
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
Encourage good practice
- by requesting that lead suppliers encourage
adoption of the code throughout their own supply chains
Dr
Richard Wilson, CEO of TIGA, and a former Chairman of the Better Payment
Practice Group, said:
“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.”
Jason
Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“Late payment of commercial debt hurts small developers and
digital publishers. 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.”
Notes to editors:
About TIGA:
TIGA is the trade association representing the UK’s games industry. The
majority of our members are either independent games developers or in-house
publisher owned developers. We also have games publishers, outsourcing
companies, technology businesses and universities amongst our membership. TIGA
was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’
at the Trade Association Forum Best Practice Awards 2010. TIGA has also been
named as a finalist in the 2010 Chartered Management Institute (CMI) National
Management and Leadership Awards in the category of ‘The Outstanding
Organisation of the Year Award (SME)’. TIGA is an ‘Investors in People’
accredited organisation.
TIGA's vision is to make the UK the best place
in the world to do games business. We focus on three sets of activities:
political representation, generating media coverage and developing services
that enhance the competitiveness of our members. This means that TIGA
members are effectively represented in the corridors of power, their voice is
heard in the media and they receive benefits that make a material difference to
their businesses, including a reduction in costs and improved commercial
opportunities.
For further information, please contact Dr
Richard Wilson, TIGA CEO on: 07875 939 643, or email richard.wilson@tiga.org.