Skip to comments.Big businesses promise Obama they'll pay their suppliers faster
Posted on 07/11/2014 7:29:13 AM PDT by Citizen Zed
President Barack Obama can't keep children from entering the U.S. illegally, but he can jawbone big businesses into signing a pledge to pay their suppliers faster.
So goes this "Year of Action" at the White House.
The White House announced its SupplierPay initiative Friday morning. Large companies ranging from Apple to Westinghouse Electric Co. have committed to either accelerating their payments to their small suppliers or helping them access working capital at a lower cost.
(Excerpt) Read more at m.bizjournals.com ...
Big businesses do string out their smaller vendors shamelessly .but so does the gummint. The gummint should handle their own mess and leave the businesses to deal with the other.
This is a good example of something which is questionable for government to be involved in.
This is a problem in the business world, namely, how some businesses pay vendors slowly. And then this causes cash flow problems for vendors. But does it rise to the level of presidential involvement? Does it rise to the level of someone such as a president advocating federal legislation on the subject?
it is a problem, but it is not anywhere for the government, let alone the President, to get involved.
Not all problems should be addressed by government. In fact, relatively few should. This is one that should not.
And, no, ObaMao did not tell us to do this. It is something we do on our own and did long before his dictatorial a$$ crossed the White House threshhold.
Kickbacks are built in
We had a few large customers who played all sorts of games with payment dates, “mandatory” holdbacks and just outright underpayment. We charged them more, put them on the bottom of the list for shipping and held up future orders until net-30 interest charges were met. Often the actual person buying our stuff had no idea about the games the purchasing department was playing in order to squeeze out a couple of percent. Other customers paid quickly for the agreed amount. They were treated like kings.
General Electric is probably the biggest offender in terms of stretching out payments to vendors.
That’s one way they bankroll GE Capital, using OPM (other people’s money) to drive profits up and up.
Since GE is a big Obama supporter and the ultimate crony capitalists, I’ll bet THEY didn’t have to agree to pay their vendors more speedily.