Apple to pay suppliers faster, signs on to White House's SupplierPay program

Apple to pay suppliers faster, signs on to White House's SupplierPay program

Apple is one of the companies signing on with the Obama Administration's SupplierPay initiative, a voluntary program which is intended to get larger businesses to pay the smaller companies on their supply chain promptly. For Apple, that means the companies that supply the components for their devices. The purpose of the program is to get money into the hands of small businesses faster, reducing the need of these businesses to borrow money, according to the Wall Street Journal:

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.

Apple uses several component suppliers, both in the United States and abroad. By signing on to SupplierPay, Apple is committing to paying these companies that they rely on in a timely fashion.

What do you think of Apple's involvement in SupplierPay? Let us know below in the comments.

Source: The Wall Street Journal

Joseph Keller

Joseph Keller is a news reporter for iMore. He's also chilling out and having a sandwich.

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There are 6 comments. Add yours.

Skyeberg says:

Outstanding. Large companies have been leveraging the monies of small suppliers for far too long. Let's hope others follow suit.

rmkilc says:

This shouldn't require a government program. Apple should be doing this on their own.

Shamrock says:

Agreed.

Has Apple been paying their suppliers after 15 days this whole time? They could have jumped in the group to show that they support the movement (even though they've been doing that), and it will then make other companies jump in to look good.

rmkilc says:

What's next, a voluntary government program for those who brush their teeth everyday?

BBZ10wannabe says:

Far too often big companies like phone companies, push their weight around and dictate payment terms of net 60 instead of the normal net 30 just because they are big and they can get away with it. They draft purchase orders that say essentially, we don't care what your payment terms are but we'll make our best effort to pay you within 60 days of receiving your invoice (regardless of when you shipped the goods and generated your invoice) This can leave small businesses without cash flow for up to 70 days or more once they have processed it, signed it, mailed it or paid via ACH etc.. I'm sure this will be a welcome voluntary program.

diaz2010 says:

Shouldn't the government figure out the problems that it has created before jumping into the concerns of private industry? It seems to me that the lawmakers in Washington should be trying to find ways to reduce the amount of money that they are borrowing to run the country. But instead, they will continue to pass budget deals that cause the country to have a deficit, which will lead to more borrowing...