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FairPaymentChoice.org launches to advocate for small businesses

Fair Payment ChoiceFairPaymentChoice.org recently launched as an online resource for information and advocacy for small businesses regarding payment treatment.

The site allows small businesses to join with other entities around the country to advocate for and support fair payment practices. It is designed to raise awareness of the issues caused by generally-accepted invoice payment delays and to culture the development of ideas to resolve issues in the current payment system.

A 2009 article from The Wall Street Journal pointed to a trend in earnings results that showed big companies with more than $5 billion in revenue often sped up collection from consumers while slowing payments to suppliers, The Wall Street Journal reports.

Smaller firms, however—those with less than $500 million in annual sales—generally took longer to collect cash and paid suppliers faster than in the previous year.

Taulia, a provider of early payment solutions and a supporter of FairPaymentChoice.org, said programs to pay suppliers early are not popular. According to a site press release, only 12 percent of invoices have pre-negotiated early payment terms, meaning big companies are not required to provide early payment for invoices.

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