Islington Council's Challenges
Islington Borough Council is firmly committed to prompt payment of its suppliers, particularly smaller businesses which are the backbone of the UK economy. It pays 95% of invoices within settlement terms and has a policy of paying local suppliers within 10 days.
As a prime funder of its supply chain, the forward-thinking council was looking to innovate its payment processes to increase supplier choice and strive for excellence in its Accounts Payable function.
The Council had a long-established relationship with Basware through its Scan & Capture and e-invoicing solutions. It decided to embark on a project to implement Basware Pay and approach its diverse supplier base.
How Basware Pay enabled Islington Council to save both time and money
Basware Pay provides a seamless, easy-to-deploy payment solution. It combines Mastercard’s payment processing capability with Basware’s digital Purchase-to-Pay and e-invoice network, allowing payments to be issued quickly and seamlessly after invoice approval.
The solution would give the Council the ability to pay its suppliers early – in as little as two days – using secure, online payment technology for frictionless transactions. Suppliers accept a small discount from the invoice value in return for early payment.
The Council started by segmenting its supplier base into tiers based on expenditure. It chose to invite rather than mandate its suppliers to participate in Basware Pay, by reaching out personally to existing contacts amongst its tier-one suppliers, who account for the bulk of its spending, to set up meetings and initiate strategic conversations.