The federal government is launching a business payment initiative to help small and medium-sized enterprises expand and hire workers, and they’re enlisting several major U.S. and multinational companies to help it succeed. AT&T, Apple, Coca-Cola, and Johnson & Johnson are among those corporate giants that have pledged to pay their smaller suppliers within fifteen days.
The “speedy payout initiative” aims to improve the cash flow of the SMBs that supply major corporations so that they can invest in themselves and hire more workers. The Feds also suggest that the initiative will ensure a healthy supply chain for the larger companies.
This initiative is based on a similar program applied to many government contracts, in which the federal government promises to pay contractors promptly if those contractors, in turn, commit to rapidly pay the smaller firms that supply them with goods and services. Since that federal initiative was launched three years ago, more than 172,000 small businesses have received over $1 billion in accelerated payments.
It remains to be seen whether or not these large corporations have the necessary technology and infrastructure to make this happen effectively, but it clearly presents an opportunity for companies like Xeeva that offer procure to pay and eInvoicing solutions.