Showing 1 ideas for tag "interest savings interest"

Department of the Treasury

Extend payment terms beyond 30 days to save interest

In private industry, powerful customers sometimes unilaterally impose extended payment terms to improve their cash position, often to 60 or even 90 days. Currently, the Federal Acquisition Regulation (FAR), as well as the Prompt Payment Act of 1998, mandate paying contractors in 30 days. This limits our ability to better manage cash by negotiating extended terms. Given the enormous daily volume of Federal payments... more »

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