Prompt Invoice Payments Help Tameside Businesses

TAMESIDE Council’s move to support local businesses by making sure invoices are paid as swiftly as possible has proved extremely effective.

Since the decision was taken in 2018, performance has improved to the extent that 97% of accounts are now being settled within 30 days, providing a very welcome boost to cash flow.

Much of the credit for this has been attributed to the council’s partnership with software company Oxygen Finance. Consequently, the authority’s executive cabinet has decided to renew the contract for four more years with the option of a further two beyond 2029.

Measures taken six years ago included a review of Procure to Pay (P2P) practices and mandatory training, plus the introduction of an early payments programme, the Priority Account Service (PAS), supplied by Oxygen Finance.

The programme, which is voluntary, negotiates a rebate with suppliers on condition they receive payment within an agreed early term, benefiting supplier cash flow.

Cllr Hugh Roderick, Tameside Council’s executive member for finance and resources, said: “The PAS programme, which has been in operation since 2018, has led to significant improvements in terms of our performance in paying invoices.

“This, in turn helps local businesses by speeding up cash flow. They know the council is a customer they can count on which pays its bills on time.

“Continuing with PAS and its associated initiatives offers a great opportunity to carry on providing and potentially increasing the financial benefits for the authority while making it possible for businesses to receive swift payment.

“I would like to thank our exchequer services team for the excellent work they have done to make this arrangement work so well.”