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The Problem with Slow Paying Government Clients |
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Monday, April 19, 2010
Topic: Cash
Management
Reference: Eckblad, Marshall. "When
States Can't Pay, Small Employers Face Cash Drought." The Wall Street
Journal, Small Business:
February 9,
2010. Http://online.wsj.com.
During the worst of the
financial meltdown,
those companies with a good base of government business have enjoyed a
safe harbor
from the storm of the commercial markets. Governments have continued to
consume
during the recession and have continued to pay their obligations on
time. Those
focused on government business in sectors like IT, military services,
and
transportation have done quite well during the downturn. However, with
the
federal deficit escalating and state treasuries in dire straits the safe
harbor
of government business is closing.
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