Oxygen Finance is a world-leading early payment solution provider and the leading provider to the UK public sector.
Oxygen works with local authorities to put them in a position where they can pay a significant proportion of suppliers’ invoices on or around day 10 after invoice date. They do this through a combination of education, training, tactical deployment of facilitating technology (like electronic invoicing, which they can implement and operate without charge) and propagation of best practice. On the council’s behalf, Oxygen then engages with suppliers to agree an early payment rebate, relating to the amount of acceleration achieved on each invoice: this creates an income stream for the council from its existing spend and injects liquidity into the supply chain.
Oxygen’s early payment platform securely automates and manages the entire rebate process and facilitates automated financial reconciliation, all as a complement to the council’s ERP functionality, while providing spend insight, purchase-to-pay (P2P) transparency and rich performance analytics.
Key to Oxygen’s involvement is the scale that its programmes reach, with thousands of suppliers now choosing to participate and hundreds of millions of pounds’ worth of council spend being accelerated to suppliers.
Implementation is preceded by a robust assessment process to validate the business case and Oxygen then offers a value-based “gainshare” arrangement, whereby they are remunerated for the implementation and operation of the programme, as a proportion of rebates that are actually generated over time.
The London Boroughs of Bexley and Croydon are already live and realising the benefits of Oxygen early payment programmes, including:
- generation of substantial and tangible new rebate income: the rule of thumb is that a council can realise bottom line income equivalent to c.0.1% of its total procurement spend every year;
- efficiencies within the Council's P2P processes and policies;
- mitigating the risk associated with late payment legislation; and
- stronger relationships with the supplier base and increased creation of Social Value.
Oxygen has also been engaged to date by the London Boroughs of Hammersmith & Fulham, Harrow and the City of London.
To learn more about Oxygen Finance or receive a demonstration, please contact:
Thomas Man, Head of Capital Ambition ([email protected])
Lisa Henry, Programme Manager, Capital Ambition ([email protected])
Lewis Mitchell, Director of Sales and Commercial, Oxygen Finance ([email protected])