In the public sector you do not immediately think about unlocking extra working capital or gaining a return on your own invested capital. These are results that are nice to have but they are certainly not part of the lecture program.
E-invoicing is one of the points on the program within many government agencies. The goal is that within 2 years, 80% of all invoices will be handled electronically via DigiInkoop. The result: A faster approved invoice gives your suppliers the opportunity to be paid earlier.
Another trend is that governments want to commit to more ‘smaller’ suppliers within the next three years. Suppliers that are innovative, flexible and can deliver tailor-made solutions that meet the needs of the government. These suppliers do have a cash demand and benefit from the fact that the outstanding invoices are paid as quickly as possible.
As financial within the government, you are obliged to contribute to the strategic objectives of the organization. With NCN Capital you can fulfill this promise by contributing to the CSR objectives by not only giving your suppliers insight into the status of the outstanding invoices but also giving them the control to choose a payment date.
In tendering processes, governments take the lead when it comes to sustainable and socially responsible procurement, but in the operational execution of the closed purchase contracts it often fails to meet their own payment terms.
The turnaround time for approving invoices is (too) long, which means that in practice, penalties must be paid regularly. This not only costs money, but also causes damage to the reputation of the government as a client. In this market where certain resources are getting tighter, it is conceivable that the preference of suppliers increasingly goes to organizations in the private sector.
In addition, governments need partner suppliers who are willing to think along and invest in achieving set innovation, sustainability and CSR objectives. The fact that the use of too long payment terms does not contribute to the commitment that suppliers want and can give requires no explanation.