Last Summer, the president launched SupplierPay which encourages large corporations to pay small suppliers quickly. Participants include Apple, Salesforce, and Toyota. Expediting payments will hopefully lead to more stable cash flows for small businesses and will allow them to pursue growth projects or hire new workers.
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.