Obama has launched a new program named SupplierPay to ensure that large corporations pay small contractors in a more timely fashion to increase cash flow through the supply chain. 26 corporations have already signed on, including tech giants Apple, IBM, and Salesforce. The goal of SupplierPay is to help small business avoid borrowing money.
SupplierPay builds on the success of the Federal Government’s QuickPay initiative, which President Obama launched in 2011. QuickPay requires federal agencies to expedite payments to small business contractors with the goal of paying within 15 days. 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.