Issue - meetings

Supplier Early Payment Programme

Meeting: 22/12/2021 - Cabinet (Item 11)

11 Supplier Early Payment Programme pdf icon PDF 137 KB

Decision:

Cllr Lynden Stowe sought Cabinet approval to appoint Oxygen Finance to implement and manage a Supplier Early Payment programme.

 

Having considered all of the information. Cabinet noted the report and

 

RESOLVED to:

 

 

Approve, without further competition, the award of a call-off contract to the supplier known as Oxygen Finance Ltd for the supply of Early Payment Services under the NEPO 521 Framework Agreement (established in May 2020 by South Tyneside Council on behalf of NEPO (North East Procurement Organisation)) in accordance with the contract award criteria thereunder. The proposed call-off contract shall continue for a period of 5 years.

 

Minutes:

Cllr Lynden Stowe sought Cabinet approval to appoint Oxygen Finance to implement and manage a Supplier Early Payment programme.

 

Participation in the scheme would be entirely optional. It would give suppliers the chance to opt to be paid earlier than their contracted payment terms in exchange for an agreed discount on the invoice value. The supplier would benefit from improved cash flow and the Council would benefit from a discount on the agreed price. This was an option for larger businesses.

 

As part of the scheme a FreePay solution would be introduced – this allowed small businesses in Gloucestershire to receive payment of invoices earlier than their contractual terms without an early payment discount being applied. The intention of the FreePay solution was to give assistance to small, local businesses especially important as such business are likely to have suffered significantly during the pandemic.

 

The partnership with Oxygen, who currently worked with over 50 other Councils as well as private sector organisations, would enable the Council to introduce a tried and tested system. There were further benefits in relation to the experience they brought to improve procurement processes.

 

Having considered all of the information. Cabinet noted the report and

 

RESOLVED to:

 

 

Approve, without further competition, the award of a call-off contract to the supplier known as Oxygen Finance Ltd for the supply of Early Payment Services under the NEPO 521 Framework Agreement (established in May 2020 by South Tyneside Council on behalf of NEPO (North East Procurement Organisation)) in accordance with the contract award criteria thereunder. The proposed call-off contract shall continue for a period of 5 years.