Bloomberg L.P. announced Friday that all invoices from the company’s vendors will be processed and paid within three business days of receipt and approval while the COVID-19 pandemic threatens the viability of small businesses.
The intent is to help those vendors weather the pandemic by providing more immediate cash on hand to support their businesses. Currently, vendors have payment terms of 30 to 45 days.
Bloomberg L.P. is also continuing to pay vendors for hourly workers who are normally assigned to Bloomberg, even if those workers are not currently working because of the pandemic. This is the same policy that Bloomberg has in place for workers directly contracted by Bloomberg.
The company encouraged all of its vendors to pay their subcontractors in the same, accelerated time frame because of this tragedy, and expects its vendors to continue paying their hourly wage employees impacted by the pandemic.
“In the current environment, small businesses need cash on hand to survive,” said Michael R. Bloomberg, founder and majority owner of Bloomberg L.P.
“We greatly value all our vendors and the services of their workers who support our company. We will do our part to ensure they can continue to operate. In return, we expect our vendors to accelerate payment to their subcontractors, and to continue paying their hourly wage workers who are assigned to Bloomberg and not currently working due to the pandemic. I hope all businesses that have the means to do so make similar decisions.”
Small businesses and hourly wage workers have been disproportionately impacted by the economic effects of the COVID-19 pandemic. A recent Harvard Business Review survey of over 5,000 small businesses found that the vast majority had less than two months of cash on hand to deal with shocks. Businesses with fewer than 500 employees account for 48% of American jobs and 43.5% of GDP, according to the U.S. Small Business Administration.
