Peterborough City Council to launch early payment scheme for its suppliers
Initiative to begin early next year
Businesses are expected to get a boost when Peterborough City Council introduces a new early payment initiative.
The local authority, which spends about £363 million each year on goods and services for residents, is seeking to improve cash flow for its suppliers.
It is working with Oxygen Finance to introduce a new early payment initiative to support businesses and which should be launched next year.
The council has more than 1,930 commercial suppliers and the new scheme will enable thousands of invoices to be processed early.
It is expected suppliers could typically be paid three weeks earlier than standard payment terms.
Councillor Andy Coles, the council’s cabinet member for finance, said: “The council is an important driver of business across the county, so it is essential that we set the standard for good financial governance.
He added: "It is important we set the standard for good financial governance.”
Ben Jackson, chief executive at Oxygen Finance, said: “We are delighted to be partnering with Peterborough City Council on its early payment initiative.
"The advantage of early payment cannot be underestimated.
"For many businesses it provides vital liquidity outside of the normal month-end billing process. In these uncertain times, as businesses across all sectors look to reopen, consolidate, or expand, having financial liquidity can make a huge difference.”
With smarter processes and increased digitisation, the Supplier Incentive Scheme will ensure the council’s large-scale payment function is more efficient and effective for suppliers.
It will also offer them the choice to be paid early, typically three weeks earlier than standard payment terms.
A dedicated team from Oxygen Finance is working with the council to put the new scheme in place.