What’s the problem?
As we begin to reopen, it is critical we continue to review and support the public sector supply chain, much of which may be protected in the short term but vulnerable in the longer term dependent on their reliance of government funding and their use of reserves to remain afloat during lockdown.
Businesses have been affected in three key ways over the coronavirus outbreak:
- Rapid business slowdown across the nation due to lockdown
- Small and local businesses were unable to access government funding options
- Majority of small and local businesses struggled with increasing cash flow problems
These businesses are incredibly important to the public sector, as a key source of income for local councils, and also to protect local economy and therefore the wellbeing of local residents, reducing dependence on council support at a time when demand has increased substantially.
Councils have a key role to play in protecting these businesses – and not just the services these businesses represent, but the human impact too. Behind each small business is an individual with a family, home, and livelihood. Losing a business can be devasting, and this is only exacerbated during such uncertain times.
What can councils do to help?
Although councils can’t control the crisis, or funding from central government, there are steps they can take to support local and small businesses. The most impactful step is to get cash to suppliers quickly.
Even before coronavirus struck, late payments have resulted in the failure of thousands of businesses every year. Now more than ever, it makes sense for councils to minimise this risk going forward when there’s an easy solution.
Oxygen Finance can help. Oxygen Finance is the leading provider of payment solutions and insight to the UK Local Government market. Our early payment programmes and public sector spend analysis help public and private sector organisations to drive savings, improve operational effectiveness and deliver against social value objectives. This is a win-win for both parties.
There are many benefits to adopting this solution:
- Additional revenue stream when businesses are under financial pressure
- Strengthens relationships between councils and suppliers
- Ensures continued delivery of council frontline services
- Maintains public sector supply chains
- Adherence to government legislation
There are several councils who have seen the advantages of adopting Oxygen Finance’s early payment programme, including Warwickshire County Council. Rob Powell, Strategic Director for Resources at Warwickshire County Council commented: “In these uncertain times, the programme we have put in place with Oxygen Finance puts us in a great position to support local business.”
If you’re interested in finding out more about Oxygen Finance and how the early payment programme could help your council and support local businesses, get in touch here.