Supplier Incentive Scheme to lift local economy
Bristol businesses and suppliers could benefit from a new early payment initiative designed to help improve cash flow during the current challenging economic climate.
The Supplier Incentive Scheme will offer city businesses the opportunity to have their invoice payment time reduced as Bristol City Council tries to support suppliers by processing thousands of invoices more quickly than standard. There will be no cost for many smaller businesses, whereas larger businesses wishing to be paid earlier than standard will receive a discounted payment in return. Money saved by the council can then be reinvested back into frontline services.
The authority spends around £400 million annually on goods and services for the people of Bristol from more than 10,000 suppliers.
Teaming up with early payment provider Oxygen Finance the scheme, expected to launch this summer, could inject millions of pounds of liquidity into the local economy, whilst also generating savings that will help the council to protect essential front-line services.
It will ensure the council’s large-scale payments are more efficient and effective for suppliers in line with the recommendations of the national prompt payment code.
Cllr Craig Cheney, Deputy Mayor and Cabinet Member with responsibility for finance said: “The past year has been incredibly tough for businesses across Bristol. With our large number of small and independent businesses, we hope this scheme will help local businesses recover and grow back
“The council is an important driver of business within the city, 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 thousands of suppliers we work with.”
Ben Jackson, chief executive at Oxygen Finance said: “We are delighted to be partnering with Bristol 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.”