Washington, D.C. — During National Small Business Week, several major U.S. companies including Intuit, JPMorgan Chase, Alpha Technologies, Accion Opportunity Fund, and Vistage joined the U.S. Chamber of Commerce to launch a pledge asking companies to pay their small business suppliers quicker to help America’s small businesses manage their capital and maintain a healthy cash flow.
The companies signed on to the U.S. Chamber of Commerce’s Prompt Pay Pledge, calling for companies to commit to paying small business suppliers quicker or offer private financing options, and clearly communicate 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 P. 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.”
The Prompt Pay Pledge kicks off a national initiative to encourage large businesses to do their part in ensuring economic success for businesses of all sizes and educate small business owners on how to establish and advocate for clear payment terms.
Small businesses make up 99.9% of U.S. firms and account for the employment of nearly half of the American workforce. Trillions of dollars are exchanged between large businesses and small businesses every year. For large companies, every $1 billion in spending translates to an average of 3,000 suppliers, according to research by The Hackett Group.
“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 Emma Chontos, Chief Procurement Officer of Intuit. “We know from serving 10 million small business customers that use Intuit's products and services 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.”
“When small businesses are successful, the economy and our communities are stronger,” said Ben Walter, CEO of Business Banking, Chase. “We know cash flow is an ongoing concern for small business owners and we’re proud to join this important effort to help small suppliers and vendors get paid quickly.”
When small suppliers have a stable cash flow, they can run their business, pay their employees, and plan for future growth. When large businesses pay small business suppliers faster, it strengthens their own supply chain as financially healthy suppliers can make improvements like faster shipping and better materials and products.
Prompt payment is especially important during periods where interest rates are rising, as suppliers who are not paid are forced to finance the costs of goods and services in the interim. For customers who cannot offer faster terms, offering supply chain financing allows customers to pay their bills later while providing suppliers with faster access to cash.
“Based on 50 years in business, Alpha Technologies can clearly state that prompt settlements and timely payments of invoices are critically important to the health of American small businesses,” said Fred Kaiser, Chairman and CEO of Alpha Technologies.
“We are honored to partner with the U.S. Chamber on this crucial initiative that will help leaders run healthier businesses and fuel their local economies,” said Vistage CEO Sam Reese. “With more than 45,000 Vistage members across the globe, Vistage has a unique vantage point into SMB CEO challenges. This partnership with the Chamber of Commerce showcases our commitment to advocating for small businesses as the lifeblood of their local communities and the engines of economies around the world. We see the vital importance of helping to remove barriers for small businesses so they can continue to make great decisions that benefit their companies, families and communities. The Prompt Pay Pledge is a win-win for American business.”
The Chair of the Senate Small Business & Entrepreneurship Committee Sen. Ben Cardin (D-MD) and Ranking Member Sen. Joni Ernst (R-Iowa) expressed their support of the Prompt Pay Pledge in a video as part of the rollout during National Small Business Week.
“It is essential to our small business operation that customers pay us promptly in return,” said Natalie Kaddas, CEO of Kaddas Enterprises, Chair of the U.S. Chamber Small Business Council, and member of the U.S. Chamber Board of Directors. “We need the support of our larger business customers, and we know that they rely on us. The business community is an ecosystem and small businesses play an essential role in fueling economic growth.”
Companies interested in signing the Prompt Pay Pledge can learn more and take the pledge here.
How the U.S. Chamber Supports Small Business
The Prompt Pay Pledge builds on the U.S. Chamber’s longstanding commitment to supporting and advocating for small businesses. We work every day to give small businesses a big voice in Washington, connecting entrepreneurs and federal officials and advocating for policies that help them grow, rather than holding them back. Our Small Business Council is made up of 100 small business owners from across the country that steer our work in fighting for policies that keep Main Street businesses thriving and regularly visit Capitol Hill.
Since 2017, we have partnered with MetLife to survey small businesses on a quarterly basis for the Small Business Index, which provides valuable insights on current challenges and opportunities for small business that inform our advocacy in Congress. Through our small business platform CO—, which helps almost 20,000 businesses every day and had more than six million site visits last year alone, we are equipping small businesses with the tools and insights they need to ensure their own resilience in the face of any challenge. Learn more about the U.S. Chamber's small business work here.
To celebrate National Small Business Week, CO— has curated a special collection of content here and will host a Small Business Day event on Thursday, May 4 at 1:00p.m. ET featuring small business leaders sharing expert advice and tips for putting these strategies into action.
