Thursday 29th November, 2012

Oldham Borough Council has announced its aims to make large savings by paying suppliers early in return for a cash rebate. The local authority has been trialling an ‘Early Payment Programme’ by Oxygen Finance since June 2012 and the council expects to save £2m over a four year period.

Oxygen will handle all the council's supplier payments and it will receive a minimum of 1% back on the value of each total invoice total. The council have paid more than £72m of payments this way since the scheme began.

Roberto Moretti, Oxygen’s European chief executive said: “it will not only boost cashflow for SMEs but deliver millions in extra funding at a time when the audit commission has found that a quarter of councils will struggle to balance the books in 2012-13 as central Government funding has already dropped by £1.6bn this year.”

Charlie Parker, Chief Executive, Oldham Council, said: "Our work with Oxygen to implement the Early Payment programme is helping Oldham Council to make significant savings over the next few years.”

Roberto Moretti, Oxygen’s European chief executive said: “Late payment is a relic from the days of writing cheques. Oxygen Finance wants to work with businesses and authorities to deliver value for money and income for both sides and quicken the payment process.