The Obama Administration Friday announced the launch of a new partnership aimed at speeding business-to-business payments to small companies.
Dubbed SupplierPay, the initiative is being spearheaded by the Obama White House, US Small Business Administration and 26 notable corporations, including some of the biggest brands in the globe. The purported aim is to improve the supply and payment chain to spur healthier companies that are more likely to invest in new opportunities, equipment and staff. The companies signed on to SupplierPay – which includes Apple, AT&T, Toyota, Lockheed Martin and Johnson & Johnson – have pledged to pay smaller suppliers faster and word to share best practices.
SupplierPay builds on the existing Federal Government’s QuickPay initiative, which President Obama launched in 2011. That program mandated that federal agencies had to make payments to small business contractors more quickly with the goal of paying within 15 days. A White House press release noted:
“As a result of QuickPay, we have already seen well over $1 billion in cost savings for small businesses since 2011, leading to greater investment and job creation. SupplierPay is the private sector’s equivalent, where companies have committed to pay small suppliers faster or help them get access to lower cost capital.”
- Brian Shappell, CBA, CICP, NACM staff writer