London-based Ormsby Street, the company behind credit-checking online tool 'CreditHQ', has revealed that out of twenty leading UK retailers, Tesco has the worst payment record, settling its debts on average 105 days beyond terms.
Iceland and Debenhams followed in second and third place, respectively settling debts (on average) 75 and 73 days late - against an average result, for the twenty companies listed, of 45 days beyond terms.
At the other end of the spectrum were Fortnum & Mason and Lidl, the study found, respectively five and nine days late with payments, followed by House of Fraser and John Lewis, with an average of 15 and 18 days respectively.
"For a small manufacturer or supplier, winning a national retail contract can feel a little like Christmas has come early," said Martin Campbell, managing director of Ormsby Street. "Yet if it means they have to wait more than two months to receive payment, it is a big decision as to how any shortfall in cash-flow can be bridged, if indeed it can. The answer lies in small businesses protecting themselves against late payments, (...) by negotiating more favourable payment terms and then chasing hard for payment when it is overdue."
The CreditHQ tool presents its credit-analysis of companies, based on suppliers' experience, through a red-orange-green rating system.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Martha Sparrius. To subscribe to ESM: The European Supermarket Magazine, click here..
