It may look like a small rubber stamp, but it can have a huge impact on your small business. Do you want to receive timely payments on your State of CA invoices?

If you stamp your invoices to the State with a “Prompt Payment Rubber Stamp,” you will alert the State accounting offices to your certified status and greatly improve your ability to have your invoices paid on time.

Generally, the State’s payment policy is to pay invoices within 45 days of receipt. Should it take longer, the State automatically will pay a penalty to the business submitting the invoice. If your business is certified with the State as a small business (SB) or non-profit, the penalty paid by the State is higher.

Since the State wants to avoid paying penalties, the State accounting offices look for the Prompt Payment stamp and make those invoices a top priority. Late payment penalties are .25 percent per day of the total invoice amount less tax. The invoice must be “properly executed and undisputed” to receive prompt payment benefits.

If you are doing business with the State and you aren’t using a prompt payment stamp, you need to consider ordering one as soon as possible. It isn’t required, but it can be a very good small investment for your business.

Any certified small business and nonprofit organization registered with the Office of Small Business and DVBE Services (OSDS) is eligible to purchase and use the stamp.

The customized stamp contains the State of CA seal and your firm’s Certification Reference Number. You can order either a traditional or self-inking stamp. For an order form, Click here…

Not certified as a CA Small Business? Contact the Orange County SBDC at 714.564.5200 for assistance.