What Do You Need To Apply To A Qualified Purchaser?
Vendors doing business with the state of Illinois have been subject to long delays in payments that have made the state a fairly unpredictable customer to deal with. Instead of risking the loss of business from these vendors, the state began a special vendor program that allowed financial companies to act as intermediaries.
Vendors with late invoices can send the invoices to these intermediaries, called qualified purchasers, and receive most of their expected payment on a faster schedule, with the purchaser then waiting for the state to catch up. Vendors still need to go through a process with the state before qualifying for the program, but eventually, if they can show they meet the requirements, they can go to a purchaser for help.
Show Proof of Debt and Nonpayment
This may seem obvious, but you have to prove that not only are you still owed the money but that you also haven't received anything for at least 90 days. The 90-day limit gives the state time to try to pay your invoice, which is the optimal outcome as it eliminates the middle man and closes out the entire invoice quickly. Given the state's record -- remember, it admitted it was so behind that it actually created this vendor payment program specifically to address the problem -- you'll likely have to wait the 90 days. But once that time has passed, contact a qualified purchaser and show them the invoice plus proof that you submitted it to the state originally.
Show Proof That Your Invoice Does Not Include Prohibited Categories
You can't invoice everything through the vendor payment program. Certain categories are not allowable, and these include medical costs. In other words, if you have an invoice for providing medical assistance, you may not qualify for the program. (If you want more specific advice about your particular invoice, contact the purchaser to see what they say.)
Show That All Liens and Other Claims Have Been Settled (or Were Not Applicable)
Sometimes vendors can have their own vendors, or subcontractors, and those subcontractors can sometimes put liens on goods or make other claims against the vendor applying for the vendor payment program. Vendors need to show they either have no liens or have cleared any liens relating to the invoice and the services or parts it references.
The process for getting paid through a qualified purchaser is actually a lot simpler than it sounds, and if you're not sure about what to do, contact a purchaser to discuss what their company wants to see. This program helps vendors get their money a lot earlier than the state would be able to pay it, so take advantage of the opportunity and get your accounts filled again. Reach out to a company such as VendorPayment to learn more.