Large companies pledge to pay small biz faster

With an eye towards strengthening the small-business sector overall, the U.S. Chamber of Commerce has launched the Prompt Payment Pledge initiative, which asks signatories to commit to offering prompt or even expedited payments to small businesses or at least offer easy-to-understand financing options.

The pledge is premised on building strong relationships between large and small businesses, with the chamber noting that trillions of dollars are exchanged between the two every year. In this respect, the chamber says small businesses are a fundamental resource for the day-to-day business operations of large companies, as much as these large companies are a major part of small business revenues.

The Prompt Payment Pledge signals a commitment to do two things:

• Provide expedited or timely payment for invoice or enable a private financing solution that helps small suppliers access working capital at a lower cost.
• Clearly communicate payment policies and terms to small-business suppliers.

Large companies that sign the pledge will get a comprehensive Communications Toolkit to share about their commitment, recognition in an article featured on the Prompt Pay Pledge landing page, and opportunities to partner with the U.S. Chamber on editorial and social media content to share their story and relationship with suppliers. The chamber has also provided small businesses with a toolkit to assist in advocating for fair payment terms.

"Our economy is an ecosystem, where large businesses depend on small businesses and vice versa —and those supplier networks support jobs and strengthen communities across the country," said Suzanne Clark, president and CEO of the U.S. Chamber of Commerce. "Our nation's economic strength relies on the small suppliers whose hard work and entrepreneurial spirit keep supply chains functioning across every industry. We owe it to them to ensure they are paid promptly so they can invest, grow, and lift the entire economic ecosystem along with them." 

Intuit was one of the first companies to sign onto the pledge, citing its own experiences with small businesses as its motivation.

"We are constantly working to deliver on our mission of powering prosperity, which includes addressing cash flow and credit access for our supply chain partners that need it the most," said Intuit's chief procurement officer, Emma Chontos. "We know from serving 10 million small-business customers ... that our suppliers share significant pain points — healthy cash flow and access to capital. As a company that has been championing these issues, we are thrilled to see a growing movement of companies committed to doubling down on expedited payment to small and diverse suppliers."