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Payment on Purchase

22 June 2017

Agencies have generally moved way from paying suppliers ‘in advance’ or with ‘upfront’ payments, and are instead using the prompt payment approach.

However there are other options. Agencies may use ‘payment on purchase’ where there are:

  • 1. good commercial practices around the procurement,
  • 2. specific reasons for needing payment on purchase, such as:
    • i. purchase of small consumables,
    • ii. holding of stock, shipping requirements, international requirements,
    • iii. provide for programme/project establishment costs for suppliers, such as not for profit social services providers, that cannot fund if themselves, and
  • 3. better ways of managing risk and governance than by paying on delivery or performance.

For more information on funding and payment options please refer to the following links.


Last updated 10 July 2017