Purchasing Card ProgrammeCorporate Banking

Purchasing power made simple

Most businesses spend a substantial amount of time and money processing purchases of goods and services. Requisition, purchase order and invoicing systems can involve a lot of administrationand use up valuable in-house resources.

While this system may be suitable for high-value purchases, it may not be as economical or efficient forthe bulk of business purchases which are low value.

Now there is a simple and easy way to streamline your purchasing process and give you more controlover how money is spent in your business.

The Purchasing Card Programme offers you:

• a simple and easy way to centralise purchasing control

• a convenient way to place orders and pay for goods and services

• the opportunity to have a payment system that istailored to the requirements of your business.

This brochure is a guide to how The Co-operative Bank Card Programme can benefit your business.

Contents

2 What is the Purchasing Card Programme?

3 Why do I need the Purchasing Card Programme?

6 How does it work?

7 What is the purchasing process?

8 What are the benefits of the Purchasing Card Programme?

8 How will the programme be implemented?

8 What is the next step?

2

What is thePurchasing Card Programme?

Why do I need thePurchasing Card Programme?

Could your business benefit from any of the following?

• Simplified purchasing procedures.

• A reduction in paperwork and administration.

• Increased control over low-value expenditure.

• Enhanced management information.

• Better supplier relationships.

If the answer is ‘yes’ then the Purchasing Card Programme can provide the solution.

3

4

How does it work?

The Purchasing Card Programme offers you the ease and convenience of paying for goods and services using the Visa payment system. It works in the following way:

• You select which members of staff are to be issued with a charge card to purchase goods or services directly from a list of company-approved suppliers.

• You tailor the programme to your business requirements in terms of transaction limits, types of expenditure and authorisation.

• Your employees order using their Purchasing Card as payment andwe pay the supplier within four days.

• You receive detailed management information on all your company’s expenditure and your cardholders receive individual statements.

• Your balance is automatically cleared at the end of each billing period with a single Direct Debit, rather than individual payments to each supplier.

Manager • Establishes structure of account.

• Nominates cardholders.

• Sets transaction limits.

• Checks monthly statements.

• Authorises payment by Direct Debit.

Employee • Places order for goods or

services using card.

• Receives goods or services

from supplier.

• Reconciles monthly statement and

passes to manager for approval.

Supplier • Receives order.

• Obtains card authorisation from

The Co-operative Bank.

• Delivers goods/services.

• Receives payment within four days.

The purchasing process is clear and simple, involvingthe minimum amount of administration for managers,employees and suppliers.

What is thepurchasing process?

5

Benefits to your business include:

• centralised control of purchasing – you cantailor the programme to suit your individual businessneeds and have complete control over who buys whatand from where.

• reduction in administration costs – requisitionforms, authorisation forms and purchase orders are notrequired, which substantially cuts down on paperwork.

• comprehensive management information –six management reports are available, detailing yourbusiness purchasing activity. These will be supplied inelectronic format, on a monthly basis. Paper formatsare available for an additional fee.

• easier payment process – you will no longerneed to send cheques or make individual payments toeach supplier, as they will be paid directly by the bank.All you have to do is pay off the total balance at the endof each month with one Direct Debit payment.

• simplified VAT accounting – the managementreports can show VAT details on each purchase andthese reports can be used to simplify the process ofreclaiming your company VAT*.

• improved relationships with suppliers –detailed information on supplier use and guaranteed payment within two to four days will enable you to negotiate better terms with your list of authorised suppliers.

* A process which has been approved by HM Revenue & Customs.

Benefits to your employees include:

• a simple and straightforward purchasingprocess – employees can place orders by phone, fax, internet, or in person, quickly and easily.

• time savings through reduced administration – because paperwork is substantiallyreduced, employees will save valuable time which canbe used to focus on other, more important tasks.

• quicker delivery of goods and services –delivery times will be reduced because the whole purchasing process is simpler and faster.

Benefits to your suppliers include:

• increase in business – being on a preferred listmeans suppliers will receive more regular orders andcan develop customer loyalty more easily.

• quicker payment times – we guarantee to pay your suppliers within four days, which willimprove their cashflow and lead to better relations with your company.

• reduced administration – administration costswill be reduced because information will be sent andreceived electronically, cutting down on paperwork.Delivery times will be reduced because the wholepurchasing process is simpler and faster.

What are the benefits of thePurchasing Card Programme?

The Purchasing Card Programme can benefit your business, your employees and your suppliers by providing increased control of expenditure and accurate and efficient management reports.

6

How will the programme be implemented?

The Purchasing Card Programme can significantlyreduce the amount of time and money you spendprocessing high-volume, low-value businesspurchases. However, in order to take full advantage of the programme, you will need to review the way in which your company makes its purchases of low-value items and implement changes to make it more efficient.

We will also appoint an Implementation Manager whowill be your day-to-day point of contact at the bankand will be able to offer advice and support to help you implement the programme with minimaldisruption to your business.

Your Implementation Manager will help you set up a pilot Purchasing Card Programme, tailored to the specific needs of your business. They will also help you set success criteria to judge whether the pilot has worked and if these criteria are met, we willthen roll-out the programme throughout other areas of your business.

We will also provide you with a comprehensive guidewhich includes documents, forms and presentations to help you explain the benefits of the new purchasingsystem to your employees and suppliers.

What is the next step?

• If you would like to find out more about how thePurchasing Card Programme can benefit yourbusiness call 08457 654 654 and we willarrange for one of our Relationship Managers to discuss the product with you in more detail.

• If you would like to sign up for the programme,complete and return the application form in thepocket of this brochure.

Acquisitions buy in/buy out

Asset finance

Charity banking

PFI/PPP

Property finance

Public sector

Relationship bankingRenewables/carbon reduction finance

Syndicated finance

Treasury services

Ethics as standard

Please call 08457 654 654 if you would like to receivethis information in an alternative format such as largeprint or Braille.The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No. 990937.

The Co-operative Financial Services Limited, Registered Office: New Century House, Manchester M60 4ES. Registered Number 29379R.

The Co-operative Bank is authorised and regulated by the Financial Services Authority (No. 121885),subscribes to the Business Banking Code, is a member of the Financial Ombudsman Service and islicensed by the Office of Fair Trading (No. 006110).

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