“The Obama administration said Apple Inc., Coca-Cola Co. and about two dozen other companies are signing on to a White House effort to speed payments to firms down their supply chains, a move intended to boost cash flows and increase investment at smaller businesses,” Jeffrey Sparshott reports for The Wall Street Journal.
“President Barack Obama on Friday is set to announce SupplierPay, a voluntary program in which companies commit either to pay small suppliers faster or help them get access to lower-cost capital,” Sparshott reports. “The program will ‘strengthen small businesses by increasing their working capital, so they can grow their businesses and hire more workers,’ the White House said in a statement.”
“SupplierPay builds on the federal government’s QuickPay program started in 2011. It sets a goal of having small-business contractors get paid within 15 days of delivering a product or service. Quicker payments can strengthen small companies’ cash flows and make them less likely to need to borrow,” Sparshott reports. “SupplierPay is designed to be a private-sector counterpart to the federal programs, the White House said.”
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