Today Fundbox, along with a coalition of concerned companies that serve small businesses, launched #paytoday, a campaign aimed at encouraging enterprises and governments to pay their small business vendors right away.
According to Fundbox data, small businesses are owed around $900 billion in receivables and on average it takes them 28 days to get paid. Yet #paytoday partner Alignable estimates that 37% have 1 month or less of cash. With shelter-in-place rules in place across the U.S., many small businesses have lost significant revenue and are living off of those minimal cash reserves. For many, the situation is dire.
#paytoday argues that, if everyone paid their small business vendors right away, there would be almost a trillion dollars injected into the economy, straight to small businesses. That could be enough runway to help them survive until the federal government’s stimulus package is disbursed.
Fundbox has committed to paying our small business vendors ahead of all others. Fundbox CFO Marten Abrahamsen said, “As a short term relief effort it’s vital that we get money into the hands of our SMB suppliers quickly. This said, we are prioritizing and committing to pay our small business suppliers first.”
In addition to Alignable and Fundbox, the other coalition members include Gusto, Business.com, Womply, Small Business Edge, smallbizdaily, and the Actual Agency.
Please support this initiative by using the #paytoday hashtag, and visiting paytoday.club, where you can learn more, sign the pledge, and download social graphics to share.