| Alliance Boots is one of the companies that have come under criticism from the small business community, due to its policy of delaying invoice payments.
The organisation informed suppliers that invoices would be paid up to 75 days late and would charge a 2.5% settlement discount for paying them within the extended period.
Small companies often suffer from disrupted cash flow - which is commonly a factor in a firm going out of business. The Federation of Small Businesses (FSB) has denounced the actions of Alliance Boots and other large organisations who are delaying payments to suppliers during the economic slowdown.
“At a time when small businesses are finding it difficult to deal with a slowing economy and rising costs, it is shocking that large companies think it is acceptable to use them as an unofficial source of credit,” stated National Chairman of the FSB, John Wright.
The Forum of Private Businesses (FPB) is calling for the government to set an example, and pay invoices promptly.
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