Northumberland County Council announces new early payment scheme to improve cash flow to suppliers
Northumberland County Council has announced it is working with Oxygen Finance to introduce a new early payment initiative, called the Supplier Incentive Programme.
The council spends £430million annually on goods and services for the people of Northumberland and has more than 10,000 suppliers.
The Supplier Incentive Programme (SIP) will enable thousands of invoices to be processed early, injecting millions of pounds of liquidity into the local economy, while also generating savings that will help the council to protect essential frontline services.
Ben Jackson, chief executive at Oxygen Finance, said: “We are delighted to be partnering with Northumberland County 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.”
With smarter processes and increased digitisation, the SIP 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.
Jan Willis, executive director of finance at Northumberland County Council, said: “We are committed to investing in strategic initiatives that help us to protect future regional growth and development.
"The council is an important driver of business across the county, so it is essential that we set the standard for good financial governance.
"The implementation of a sector leading early payments initiative reinforces our commitment to the many thousands of suppliers we work with.”
A dedicated team from Oxygen Finance is working with the council to put the new scheme in place and it is expected be launched in the new year.