It’s many entrepreneurs’ dream; that first big contract from a retailer which launches your start-up brand onto the national stage. It should be time to celebrate your success, but for many small firms this is the start of a new financial nightmare. To support these independent suppliers realise their potential, retailers need to become more flexible about their payment terms.
The collapse of Carillion means the tragedy of layoffs, not only for thousands of workers within the company, but also for many of its 30,000 small and medium-sized (SME) suppliers who are owed hundreds of millions of pounds. And, in turn, the suppliers of those suppliers who will, in turn, feel the terrible ripple effect of defaults on unpaid invoices.
In a world where everything seems to be instant, slow supplier payments are a damaging anachronism.