Categories: Industry News, Pagabo News
Why Pagabo takes its financial checks seriously
We at Pagabo know that the financial health of a Supplier is important to any procurement situation. The larger the contract, the more critical the purchase, or the longer term of the agreement, the more important it becomes.
Financially stable Suppliers will provide committed or improved performance and have predictable deliveries and performance. Just take a look at the problems that have been caused by the unfortunate collapse for Carillion.
We understand that we all need to have to invest significantly less time and effort managing the relationship with financially stable suppliers and using stable suppliers should need fewer requirements to manage against performance risks.
Pagabo tests the financial stability of all of its suppliers at the point of awarding a framework agreement. We like to see suppliers that are profitable and have sound fiscal management.
We don’t leave it there!
Pagabo continues to assess its suppliers throughout the whole term of the framework. Our Finance Director reviews financial statements so that he can ask pertinent questions or learn more information about our suppliers’ financial positions.
As an example, Pagabo works closely with its construction contractors at the Expression of Interest stage so that we have a clear idea of what the impact of the potential cost would have on contractors. We can share this information with our clients to help them in their decision making.
Please feel free to contact the team at Pagabo to find out more about the financial checks we undertake to make sure our suppliers are ready for business.