Agencies should pay vendors early after getting a proper invoice if it is in the best interest of the government and if any one of these is true:
- the invoice is under $2,500
- the payment is to a small business
- the payment is related to an emergency, disaster, or military deployment
Other Situations for Early Payment
In some situations, agencies may pay a proper invoice early even without evidence that the goods or services were received. An agency head or designee may determine, on a case-by-case basis, that early payment is necessary.
For more information, read 5 CFR §1315.4(j).
Please note, the paragraph of the regulation also states, "This authority must be used cautiously, weighing the benefits of making a payment early against the good stewardship inherent in effective cash management practices."
Last modified 03/20/20