State of Illinois Implements Vendor Payment Program to Provide Relief to Vendors and Service Providers

In order to provide its vendors more normalized, fair, and transparent payment cycles, the State of Illinois has established the Vendor Payment Program.

Under the Program rules, a qualified third-party purchaser may buy vendors’ eligible receivables that are 90 days past due or more for 100% of their value. The purchase includes a 90% advance payment for assigned receivables 90 days past due, plus the remaining 10% payment once the State pays the qualified third-party purchaser all obligations associated with the invoice.

As of now, the Vendor Assistance Program, LLC (VAP), a recent member of the SBAC, is the only qualified purchaser participating in the States’ Vendor Payment Program.

Click here for additional information about the State’s Vendor Payment Program. Click here to register at the Vendor Assistance Progral, LLC.