London, 14 May 2015
The Public Relations Consultants Association (PRCA) is today publishing the following letter to call on organisations to end the practice of unethical payment terms, and pay their PR agencies within 30 days. This letter, which forms part of the PRCA’s #30Days campaign, has been signed by 51 PR consultancies.
The Public Relations Consultants Association (PRCA) and its members would like to call time on the unethical practice of lengthy payment terms in the business of communications.
The PRCA has recently launched its #30days campaign, calling on organisations to pay their PR agencies within 30 days. The issue is an important one for the PR industry – as it is for every industry – because it highlights a problem which is draining the lifeblood of business growth.
According to the CBI, SMEs account for 99.9% of private sector companies and The European Commission’s SME Performance Review estimates the Gross Value Added of SMEs represents 49.8% of the UK economy. Therefore there are huge implications in them succeeding or failing. One of the main factors in their survival is cash flow.
It is unfair that larger organisations take longer to pay their suppliers such as PR agencies when these suppliers are often smaller companies and cannot survive with an irregular cash flow. Why should smaller companies provide interest-free loans to much larger organisations?
The delay of payments also affects larger PR firms that cannot sustain their biggest costs which include talent and real estate if their clients do not pay them on a regular basis. If PR agencies are to provide their clients with quality services, clients need to respect the cash pressure that their PR firms face.
There is no reason why any company needs any longer than 30 days to pay for the services they have been provided with. It is highly unethical way to treat a commercial relationship, and it has to end.
We, the signatories urge companies to pay their PR agencies, and indeed all suppliers, within 30 days. You can mark this pledge by signing up to the Government’s Prompt Payment Code. You can also do so by tweeting with the hashtag #30days, to help to promote the PRCA’s campaign.
We also urge the Government to make prompt payment a legal requirement, not merely a voluntary measure.
Acceleris Marketing Communications Ltd
Coverdale Barclay Ltd
Firefly Communications Group
Fuja Communications Ltd
Gung Ho Communications Ltd
Life Size Media
Little Red Rooster
Man Bites Dog
MCE Public Relations
Midnight Communications Ltd
Nelson Bostock Group
Nexus Communications Group Limited
Oracle PR Ltd
Raw PR and Marketing
Red Lorry Yellow Lorry
Salix and Co
The Marketing Pod