PALO ALTO, CA--(Marketwired - Jun 30, 2014) - Payplant's digital Pay Me Now™ invoicing-financing service launching today has been approved as a Qualified Purchaser to the Illinois Vendor Payment Program to help thousands of vendors owed billions by the State of Illinois. Payplant can give vendors the cash they are owed at no cost -- the State actually pays the interest due to Payplant per the State's Prompt Payment Act. Capital for purchasing the invoices is provided by the associated Payplant Alternatives Fund which expects to lend $100 million in the next year.
All the vendor needs to do is submit her Illinois invoice to Payplant through its all electronic process. The vendor gets the first 90% upfront, wired directly to their account, with the remainder when the State pays, totaling 100%. There are no fees or interest since Payplant makes its money from the penalty owed by the State.
The State of Illinois has billions of dollars worth of unpaid bills. To help support vendors so they are not adversely affected, Illinois created the Illinois Vendor Payment Program to provide accelerated payments to the State's vendors at NO cost to the vendor.
"We're excited to be selected to help hardworking businesses get back on their feet after the frustrating wait on payments from the State. We think this an excellent example of how Payplant can help Governments and large Enterprises get payments to their vendors faster without changing their payment cycles or processes," said Neerav Berry, co-CEO and founder, Payplant.
Financing For Entrepreneurs, by Entrepreneurs
Payplant is founded by two very successful entrepreneurs, Dr. Ronjon Nag and Neerav Berry, who personally understand the challenges of financing a growing business. In 1999 they co-founded Cellmania, a software company, that managed over half a billion dollars in payments to over 50,000 vendors, and sold it to BlackBerry in 2010. When they were starting Cellmania, banks rejected them for loans even though they had top-notch customers leading them to develop a new way to solve the problem.
About Payplant
Payplant provides growth financing for entrepreneurs, by entrepreneurs. Its Pay Me Now™ digital invoice-financing service helps businesses when their customers pay too slowly. Payplant delivers fast and reliable funding, at very attractive rates and is completely on demand. For more information, visit www.payplant.com.
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Erica Zeidenberg
Hot Tomato Marketing
925-631-0553