Counties, Municipalities, Government Sectors Account Payables Financing Program – V.I.P.
1 What is VIP? “Vendor Insta-Pay Program”
The Vendor Insta-Pay (V.I.P.) program is a unique, vendor fast-pay solution that is specifically designed for LGE’s (local government entities) Municipalities, Counties & quasi-government sectors (i.e., authorities, utilities, independent school districts, state or county hospitals, state universities etc.). Orbital, Inc., in conjunction with its JV partner, pays the LGE’s vendors within approximately 24 to 72 hours. When fully implemented, the V.I.P. program: introduces process efficiencies; improves productivity; reduces operating expenses; reduces legacy costs; improves vendor cash-flow; creates new jobs; and, most importantly, creates a substantial, previously unrealized revenue stream for the LGE Municipality or County.
2 How does VIP benefit my organization?
The Orbital, Inc.’s JV partner accomplishes this by prompt-paying (“LGE”) vendors while providing LGE’s (our clients) with new, extended payment terms, thus allowing them to capitalize upon the full scope of benefits afforded under our program. The V.I.P. program is provided and managed at absolutely no cost to the LGEs, and all of the “heavy lifting” is done by the V.I.P. team and Orbital, Inc.’s JV partner respectively.
Again creates a substantial, previously unrealized revenue stream for the LGE.
Benefits afforded our government clients include:
• Immediately improves cash-flow;
• Introduces process efficiencies that improve internal productivity;
• Reduces processing expenses;
• Reduces legacy costs;
• Reduces the negative impact of late payments;
• Improves financials & capital reserves by extending the original payment terms due the servicing vendors & suppliers – without penalty;
• Improves D&B “PAYDEX” rating and overall D&B score, and positively influences the external bond rating, thereby lowering the cost of future capital;
• Eliminates the need for costly “TANS” (Tax Anticipation);
• Provides better cash-flow controls and capital autonomy; and
• Creates new jobs and increases the amount of qualified / approved DBE entities within the jurisdiction.
Benefits afforded our clients’ vendors include:
• Immediately improves cash-flow;
• Immediately provides RFP opportunities for DBEs; and
• Improves financials & opportunity to gain “bonding.”
Ease of Implementation:
We are a service provider. Therefore, other than a formalized agreement to provide rebates to our clients, we do not impose any additional legal encumbrances, such as liens or UCC filings, and allow our clients to retain complete financial autonomy.
Suite of Services….flexible & custom tailored to meet your community’s needs:
Orbital, Inc.’s JV partner, provides, implements and supports 100% (one hundred percent) of the full suite of services offered under the V.I.P. program to LGEs – COMPLETELY AT NO COST!
Project Rebate Computation & Calculation Metrics (EXAMPLE ONLY):
The Company expects that vendors who voluntarily opt into the program will, on average, accept a modest discount on the amount of each of their invoices. LGEs that pay their obligations to the Company faster than the standard 60-day term, as agreed, are entitled to a rebate based on the Company’s gross income for their jurisdiction.
The level of the rebate reflects the timing of the payments, which remain at the discretion
of the prospective LGE, and which are typically based upon the following schedule:
Reimbursement Dating / Received Within Rebate Percentage (%)
0 to 30 days 10.00 %
31 to 40 days 7.50 %
41 to 50 days 3.75 %
51 to 60 days 1.875 %
Although this example is solely for purposes of illustration, it demonstrates that substantial rebates can be realized by LGEs.