Global Marketing
Management Consultants
Global Marketing
Management Consultants
mobile-logo
Global Marketing
Management Consultants
Top

The pain of extended payment terms

How long are you willing to wait to get paid? Some major corporations are making their much smaller agencies and suppliers wait up to 90 days or more. Not because they have to, but just because they can. Sounds like bully-boy tactics. But it has major implications and you can find out what they are here in a Golden Minute.

SCRIPT

How often do you get paid? Weekly? Fortnightly? Monthly?
So why do some companies insist on taking two months or more to pay their agencies?
Agencies have cash flow problems too.
Yet many governments, including the EU, have laws governing these unfair payment terms to small to medium companies.
Yet these so call good corporate citizens continue to make their much smaller suppliers wait months for their money.
In the meantime, putting their agencies under further financial pressure.
And really if these big corporations are that short of cash perhaps their shareholders should be informed?