Cheshire West and Chester launches FreePay scheme to boost cash flow to local businesses

Cheshire West and Chester Council launched its FreePay scheme in May and has already paid over £1.6 million to nearly 400 local micro businesses, speeding up payments to businesses where cash is most urgently needed.

Cheshire West and Chester Council’s FreePay Programme, run in partnership with Oxygen Finance, has injected vital funds into the local economy to support micro suppliers with their cash flow and boost growth.

Eligible, local micro suppliers are automatically enrolled into the FreePay programme. FreePay enables the Council to pay these suppliers early without charge, supporting business growth and delivering social value through job creation.

Since the programme’s launch just over two months ago, over 750 invoices have been paid early for free and 392 suppliers are now registered on the FreePay programme. Payments are made in less than half the contracted time and this has averaged nine days.

Faster payment for free helps suppliers with their cash flow and can reduce reliance on loans or overdraft facilities, at a time when the cost-of-living crisis is having a huge impact on local businesses and their employees.

Cllr Carol Gahan, Cabinet Member for Finance and Legal, said: 

"Local businesses are vital to our region and we are committed to supporting job creation and the local economy. We are proud to make the FreePay service available for our suppliers. As increases in costs put more pressure on small businesses, FreePay will continue to accelerate cash and provide much-needed support to suppliers who are essential in delivering local services.”

It has been estimated that late payment leads to 50,000 firms a year failing across the UK. Getting paid as early as possible provides significant benefits for both large and small companies and can make a substantial impact on the growth and development of businesses.

Larger businesses are eligible to join the Council’s: 

Priority Supplier Partnership. 

The programme, which is also provided by Oxygen Finance, applies a small, pre-agreed, rebate based on how quickly the payment is accelerated. The programme provides the council with additional funding to reinvest back into delivering essential local services.

The Priority Supplier Partnership provides significant benefits to our suppliers with hundreds of firms receiving payments quickly and efficiently. We are seeing more firms signing up all the time as they realise the benefits of being paid quicker, especially if they can access the FreePay option.

About Oxygen Finance 

Oxygen Finance helps businesses thrive and public sector organisations deliver economic and social benefit to our world. Through progressive payment practices, big data and expertise, Oxygen allows public sector and private organisations to trade more effectively. Payments become frictionless, data becomes information, driving growth and efficiency resulting in better social and economic outcomes. 

https://www.oxygen-finance.com/