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