End of year Q&A: Louise Gittins, chair, CCIN
- January 2024
Local Authorities have paid over £1bn owed to small and micro businesses early, driving liquidity into local economies and speeding up payments to firms where cash is most urgently needed.
The milestone comes as small business owners and staff face immense financial stress. A third of all payments made to small businesses are paid late, while 20% report cash flow problems due to late payments1.. More than 5,600 businesses closed due to insolvency in the second quarter of this year alone2..
In response, Local Authorities are paying their small and micro suppliers early in an effort to improve cash flow and boost local economies.
Councils are accelerating payments using Oxygen Finance’s FreePay scheme, currently celebrating its 5th year. FreePay enables public organisations to pay local small and micro suppliers early without charge, reducing financing costs and in turn supporting business growth and delivering social value through job creation. Some of the UK’s largest councils now use FreePay to help deliver social value commitments.
Head of Marketing