The current COVID-19 pandemic is unprecedented and will have a significant impact on businesses of all sizes and in many sectors. During this time it can be tempting to pass cost pressures down to suppliers and agencies. But is really important to support suppliers so they are better able to cope with the current crisis and be there to support you once the outbreak is over. Here are just a few pointers to help protect your agencies and suppliers at this time:
- Consider implementing different payment practices to support agency cash flow e.g. payment in advance, early payment or interim payments
- Where payment-by-result mechanisms are in place calculate payments based on the average of the prior 2-3 periods
- When requesting invoices ensure that all information is available to complete the invoice and the process is smooth, to avoid any unnecessary delays in processing
- All invoicing from Agencies should be via electronic process as agency offices will not be staffed
- Make sure authorisers are made aware of changes in process and the reasons why to ensure no delays
- Keep an eye on the financial status of key agencies supplying key services to provide early identification of any at risk agencies.