Even in the best of times, starting — and growing — a small business can be tough. But the credit crunch that followed 2008’s mortgage meltdown made finding working capital almost impossible for many business owners. One of the ways the government is helping to fill the credit gap is with SupplierPay.
Launched this past summer, SupplierPay builds on the earlier success of QuickPay, a government initiative that asks federal agencies to pay their small business vendors quickly — usually within 15 days. SupplierPay extends this practice to the public sector. Participants promise to expedite payment of small company invoices or to help suppliers gain access to lower-cost capital.
The goals are to reduce operating costs for small businesses (QuickPay has been credited with over $1 billion in cost savings for participating companies), encourage job creation and strengthen supply chains. To date, nearly 50 large companies spanning a variety of sectors have signed on with SupplierPay, including Apple, AT&T, Honda, Kaiser Permanente and Xerox. For more information and updated lists of SupplierPay participants, visit the White House website at http://www.whitehouse.gov/the-press-office/2014/11/17/fact-sheet-president-obama-s-supplierpay-initiative-expands-20-additiona.