It’s a good time to be a small business! With the White House’s creation of the SupplierPay initiative, small businesses can increase their working capital by getting paid sooner. This is a boon for small businesses, which are the backbone of the American economy, representing 99.7 percent of all employer firms, employing nearly half of the private sector, and paying 43 percent of the total U.S. private payroll.
The White House’s announcement has already drawn support of 26 major companies, including the likes of Apple, Nissan, Honda, Toyota, PG&E, and Coca-Cola, who will speed up payments to their small businesses suppliers so that they can improve their cash flow.
By agreeing to the White House SupplierPay pledge, these 26 companies have made the following commitments:
Provide a working capital solution to the small business suppliers by paying invoices faster or providing a financing solution that allows them to leverage their receivables.
Explore financing options to ensure that small business suppliers can depend on a steady, accessible cash flow to grow, and better handle new administrative and operational burdens.
Share best practices and publicize key findings in order to strengthen supply chains and support small businesses on a larger scale.
Why should we care?
Despite government intervention and extra dollars being pumped into the U.S. economy, our country’s economy entered a meltdown in 2008. And still today, many small American businesses have yet to recover, and continue to struggle because of poor cash flow.
We recognize the expansive impact SupplierPay will have. We have already made great progress through our dynamic discounting solution, which has enabled large corporations to provide over $75 billion in early payment financing to their small business suppliers. For small businesses, having access to cash through early payments means that they are able to grow their business, hire more employees, and continue to innovate.
In fact, with our Early Payment Quick Start Initiative, we can help suppliers of large corporations get paid faster. Our new solution guarantees:
Successful early payment financing program up and running within 100 days
Assurance that 100% of invoices will be offered for early payment
All suppliers will be eligible for early payments, no matter size, spend or credit worthiness