Government Does Not Pay Its Bills on Time

Many small companies work very hard to get new accounts. Occasionally they try to get government contracts to supply products or services. Some small business people believe this will help them in case of recession, because the government has to keep going no matter what. They therefore seek a contract as a protection security blanket and guaranteed income to pay their own bills, make payroll and have the cash flow they need to survive at a time when over regulation and hostile litigation is taking its toll on small businesses.

What many small businesses do not understand is that the government pays very slow and often holds payments back due to their own budgetary mess. Often they will be in the rear some 120 days. Ninety plus days is very typical and should be expected for any small business doing business with any branch of government; city, county, state or the federal clusterfuck. I speak from total experience and out of frustration having run a 23-state wide franchise company; all of our franchisees of course, small businesses.

The government wants things, doesn