New payment service lets Virgin Islands vendors skip the wait

Governor Albert Bryan Jr. announced Monday that government vendors can now tap a private financial services company to collect payment on approved invoices far faster than the territory's standard process allows.

Municipal Vendor Services Inc. (MVSI), a New Jersey-based fintech firm, will front money to participating businesses once their invoices are approved by government agencies. The territory then reimburses the company later. Taking part is optional.

Bryan described the mechanics at his weekly Government House press briefing: "If you have a purchase order and you have the invoice you fulfilled, they verify that you have provided the goods or the services, and they pay you right away, so no more waiting around, finding the invoice, looking to see where it is."

The service comes with a price tag. Vendors who choose to use it must pay a convenience fee, similar to a credit card charge. The governor did not disclose the amount, though MVSI's website indicates it is a single fee with no additional registration or platform costs.

Payments can arrive within 72 hours, but that clock starts only after an invoice has been approved, not when first submitted. The company does not handle payroll, healthcare invoicing or most standard construction contracts. The government has not yet specified which vendor categories in the Virgin Islands will be eligible.

The partnership addresses a persistent challenge. In June, the Department of Finance reported $36 million in unpaid vendor bills, with $16 million of those invoices more than 90 days overdue. Contractors and suppliers have long complained about payment delays.

Bryan framed the arrangement as advantageous to the government as well. He compared it to an interest-free credit facility that lowers the territory's borrowing expenses and strengthens invoice management.

"It cheapens our cost of money," he said. "It helps us account for all the invoices that are out there."

The contract, registered with the Department of Property and Procurement under reference PO-26-200-2001-1291, took more than six months to develop, according to the governor.