Supplier Pay Program Launched by President Obama

President Obama has launched a new program to ensure that large corporations pay small contractors in a more timely fashion to increase cash flow through the supply chain. Westinghouse Electric Co., IBM. Apple and Salesforce are among the 25 companies that have agreed to pay their small business contractors faster under the new Obama plan called Supplier Pay. The voluntary program is modeled after QuickPay and has the goal of paying small-business contractors within 15 days and will help “small businesses free up capital to invest and hire new workers.” Westinghouse President and CEO Daniel Roderick said prioritizing payments for small businesses “helps them grow and become long-term suppliers.” Roderick said, “Overall it’s just a fundamental corporate responsibility to develop small companies that hopefully grow into big companies,” noting that large business, like Westinghouse, started as a small business as well. Roderick noted one obstacle to paying businesses quicker is getting money from overseas ventures, and called for strengthening of import-export banks.