Companies operating in the videogame sector are being urged to sign up to the Prompt Payment Code in order to tackle the problem of late payment of commercial debt.

Videogame industry body TIGA members reports 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.

TIGA is inviting developers to have their say about late payment by tweeting @tigamovement or commenting on its Facebook page.

It is asking:

  • 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.”