A Yorkshire council has agreed to pay suppliers quicker in exchange for a reduced price.
Barnsley Metropolitan Borough Council is accelerating the payment of invoices for companies that agree a negotiated deduction. It hopes the programme, managed in partnership with Oxygen Finance, will combat the problem of late payments and save the council money.
Leader of the council, Sir Stephen Houghton, said: ‘Having a scheme which helps us to pay our suppliers early, helps them with their cash flow and helps them be successful matters to us. If it also saves the council money, then that’s even better
‘Businesses tell us that cash flow is the biggest issue, and getting paid early is often what is keeping them afloat. It is about doing things differently; it is about being innovative, about being creative and about picking up examples from others.’
Research from Bacs Payment Schemes has shown businesses in the UK have £46.1bn in late payment debt, with 60% of SME’s are experiencing late payments.
Visit The MJ (£) to find out how councils can lead in reducing late payments for suppliers.
