Regulators continue to show support for the timely payments of small businesses

Major efforts have been made in recent years that would eliminate the risk of the government missing payments to small business vendors. There was once a time when government organizations were viewed as the "bullies on the block" treating the vendors and organizations they partnered with however they pleased. This was, in part, one of the factors that led to the financial crisis of five years ago.

Instead of government departments taking three months, a year or even longer than that to finally getting around to making payments, vendors are receiving more respect from regulators, who are now telling public organizations they must pay their providers in a timely fashion as to not hurt their economic viability. 

This initiative is being seen around the world. Just last week, the South African government released a statement declaring its commitment to seeing vendors providing products and services to government offices receive payments on time. 

"[The] government has prioritized timeous payment of services by government departments, as part of supporting small businesses which are important for job creation and broad-based black economic empowerment," said a statement issued by the Government Communication and Information System (GCIS) last Friday.

Here in the United States, this effort is just as important, but vendors can also help their own efforts by implementing payment solutions designed to improve the transactional process. By obtaining systems that can speed up processing, vendors can ensure their clients in the public sector receive the customer service they need. However, it is important that these solutions process level 3 data because it will guarantee that the vendor pays the lowest possible interchange rate.

Working with a provider of these solutions will help companies acquire the tools they need to quickly process government payments. 

by Ty Hardison

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