Croydon is the first London borough to launch a new early payment scheme for businesses who supply goods and services to the council.
The Croydon Premier Supplier Programme will mean faster processing of invoices in return for a small rebate which is calculated using the number of days the invoice payment is accelerated.
As part of the council’s pledge to promote social value in how it commissions contracts, locally-based suppliers will be invited to join the programme without deduction of a rebate.
It will bring benefits for businesses as they will get paid quicker, improving their cash flow, and also generate an income for the council that protects key community services.
Croydon currently uses approximately 3,000 suppliers that provide services to the council.
The new programme helps to address the Croydon Challenge – the council’s bid to save £100m by 2018.
It will see the council working with London Councils and London Ventures to encourage other boroughs to adopt the same payment model.
“This new programme achieves two major benefits. It helps Croydon businesses and supports the local economy, while also generating an income to the council which can be reinvested in delivering our most important services to residents.
“It is a great opportunity for us to be more efficient, and more effective, while setting us apart from other London boroughs as leaders in innovation.”
Councillor Simon Hall, cabinet member for finance and treasury
For more information about the Premier Supplier Programme visit www.croydon.gov.uk/PSP