Supply Chain Finance initiative gets Contractors backing

posted 24.10.2012


David Cameron?s new ?Supply Chain Finance initiative? has been given a huge boost with Balfour Beatty and Carillion signing-up  as well as a number of other contractors intending to back it.

The initiative will work by a large company confirming to the Supply Chain Finance bank that an invoice has been approved. The bank will then be able to pay 100% of the sum immediately to the supplier at lower interest rates with the knowledge that the invoice will eventually be paid by the large company.

Cameron said: ?I praise the commitment made by the businesses today and the wider support they provide to their supply chains. This Government is determined to back all those businesses who aspire to get ahead and take on more people.  ?

?In the current climate, viable businesses can struggle to get the finance they need to grow ? this scheme will not only help them secure finance and support cash flow, but will help secure supply chains for some of our biggest companies and protect thousands of jobs.?

?It can be a win-win, with large companies and small suppliers both benefiting from this innovative scheme.

John Walker, National Chairman, Federation of Small Businesses said: ?The new Supply Chain Finance scheme could help smaller firms in two key areas ? improving their working capital and tackling the issue of late payments. Nearly three quarters of small businesses report that they have been paid late in the past year, placing a huge strain on cash-flow and meaning they struggle to realise ambitions to grow.?

Recipro sourced this article from Construction enquirer.

 

Category: industry, legislation, Paul Jones