Gateshead Council boosts cashflow for local businesses with new Supplier Incentive Programme

Gateshead Council has announced it is working with Oxygen Finance to introduce a new early payment initiative to improve cash flow for its suppliers.

The scheme is in line with the recommendations of the national prompt payment code and is designed to support businesses in the “current challenging business climate”.

The Council spends some £198m annually on goods and services for the people of Gateshead and has in excess of 10,000 suppliers.

The Supplier Incentive Programme will enable thousands of invoices to be processed early, injecting millions of pounds of liquidity into the local economy, whilst also generating savings that will help the Council to protect essential front-line services.

John Shiel, service director, financial Management at Gateshead Council said: “We want all businesses in Gateshead to thrive. To allow this to happen we are committed to investing in strategic initiatives that allow businesses to grow and show good financial governance.

“The implementation of a sector leading early payments initiative reinforces our commitment to the many thousands of suppliers we work with.”

Ben Jackson, chief executive at Oxygen Finance commented: “We are delighted to be partnering with Gateshead 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.”

A dedicated team from Oxygen Finance is working with the Council to put the new scheme in place and it is expected to be launched during the summer.