Corporate payments company NOW Corp. is teaming up with the Georgia Minority Supplier Development Council (GMSDC) to both address delayed and late supplier payments in the state and support minority-owned suppliers.
A press release Friday (Feb. 23) said the GMSDC announced its partnership with NOW Corp. at its annual Financial Summit held last week. Together, the entities are launching the GMSDC NOWaccount program in an effort to promote fair B2B payment terms.
“Our constituents are feeling the pinch of extended payment terms and other cash flow obstacles in supply chains across the board,” said GMSDC President and CEO Stacey Key in a statement. “This partnership is critical to our primary mission — to meet the needs of Georgia’s small business community members and assist them in doing business with corporate America. This program is going to change the landscape significantly for our constituents, enabling them to navigate the peaks and valleys of today’s marketplace more effectively. We are excited about the potential of this much-needed initiative.”
In another statement, NOW Corp. Chief Financial officer Archie Jones said the GMSDC “is a recognized leader in supplier diversity,” adding that it will link its constituents to the NOWaccount Payment System, which enables businesses to facilitate B2B payments in a variety of rails, speeds and other factors based on individual cash flow management needs, the company explained.
“With all of the financial impacts that global supply chains can have on a small business, managing the scope and scale of these clients’ requirements be quite a challenge,” he added. “Our program is designed to relieve that pressure by smoothing out the cash flow process for these companies.”
Late B2B payments are a global issue, though much attention to the matter has been focused in markets like the U.K., where regulators have taken steps to combat unfair B2B payment terms. Associated Press reports last year highlighted how the problem is affecting businesses in the U.S., too, with entrepreneurs offering their experiences with getting paid late by large corporate customers.