How it works: Suppliers
The Priority Supplier Programme enables Suppliers’ invoices to be paid ahead of contractual payment terms in exchange for a pre-agreed rebate. The rebate is applied dynamically as the invoice is paid and is proportionate to how many days we accelerate payment ahead of 30 days (in most cases this is the contractual payment term).
To calculate the invoice acceleration, we use the number of days between invoice received date and invoice remittance date. The rebate is only applied if invoice acceleration is achieved. Therefore if we are not able to pay an invoice quicker, the supplier does not provide a rebate.
Using the example dynamic scale below: if a £100 invoice is submitted and paid 5 days after the invoice has been received, a payment of £98.75 would be made to the supplier, and a Debit Note for £1.25 would be issued.
If a £100 invoice is submitted and paid 10 days after the invoice has been received, a payment of £99 would be made to the supplier, and a Debit Note for £1 would be provided.
If a £100 invoice is submitted and paid 20 days after the invoice has been received, a payment of £99.50 would be made to the supplier, and a Debit Note for £0.50 would be provided.
This means the supplier will be paid as soon as the invoice is authorised and we will issue a debit note to the value of the deducted rebate. The debit note quotes the original invoice reference to enable the supplier to reconcile accounts.
There are no sign up costs to the Programme, and if the supplier isn’t paid early, no rebate is taken: No Acceleration, No Rebate.