As part of the Pre Budget Report on 25th November 2008, Prime Minister Gordon Brown said that plans for a multi-billion-pound fiscal stimulus to get the economy moving would include measures to help small and medium businesses which are the backbone of our economy prosper.

There is Pre-Budget report commentary in all the major news channels and bodies from eminent spokespeople following the announcements and further analysis will become clear, detailed below are two practical steps provided by Abbey UK Corporate Banking.

On 8th October Gordon Brown announced: “The key issues for small and medium-sized enterprises are cash flow, and, to some extent, access to finance […]. They need to be helped through this critical period. Late payment problems, which have intensified, with all firms on average lengthening the time it takes to pay their suppliers, including SMEs, go beyond agreed terms. The Government can ease the situation, and we will help cash flow through prompt payment.” (Hansard, Prime Minister’s Question Time)

As Britain braces itself for the first recession in 16 years, millions of small businesses may struggle to continue serving the public sector, tender for new government contracts with high upfront outlays or even stay afloat. Problem.

Abbey UK Corporate Banking has a revolutionary solution, Abbey Supplier Payments, to address these problems. Supplier payments is a service for organisations like your own, and quite simply, it allows you to provide supplier finance at no cost to you, so hitting your targets:

- Payments within recent government pledges of 10 days or less to your entire supplier base, with the added benefit of no additional impact to your working capital

- Ability for more suppliers to tender for contracts with large upfront capital requirements that smaller businesses often cannot finance

- Retain cash in your organisation to invest as your normal payment terms remain unaffected by the early payment we make to your suppliers

- Strengthens relationships with suppliers within your overall CSR strategy

How does it work? We help buying organisations in the public sector leverage their low risk profile for the benefit of your suppliers - allowing suppliers to draw down early payments on invoices they have raised. Conversely from traditional invoice finance in the market place, the cost of finance is lower – a real help for your suppliers in the current economic climate.

Our service is secure, tried and tested on a global platform and has a structured set up for you and your suppliers. We believe Abbey Supplier Payments is one of the most significant financial advances for the public sector – can you afford not to find out more?

For more information on how Abbey is helping the public sector achieve its objectives, please contact Simon Huntley, Financial Supply Chain Solutions, Abbey UK Corporate Banking on 020 7756 5171 or email simon.huntley@abbey.com

Abbey UK Corporate Banking is also a Safe Haven for your department’s deposit management. As part of the Santander Group - one of the world’s top ten banks by market capitalisation – Abbey offers financial strength, an excellent Standard & Poor’s AA credit rating and peace of mind in uncertain times. As the Abbey UK Corporate has deposits specialists for public sector institutions, you’ll receive outstanding expertise, knowledge and service *. For a quotation and more information on our range of instant access and time deposits,  contact our dedicated team on 020 7756 4200 or email ukcbdeposits@abbey.com

* Standard & Poor’s long term domestic issuer rating for Abbey National PLC