A small business, employing just two people, has won a fight with Alliance Boots over changes to their payment terms.
The story, featured in the Financial Times, found that the husband and wife team of training firm MTa International would be forced to cancel training plans with the retail giant after it altered its payment terms from 30 to 75 days. However, after discussing the terms Boots Alliance backed down.
Tony Pullen, managing director of Experian Business Information, part of the credit services division with Experian UK, told the Financial Times: ‘We know from our historical trends data that larger companies traditionally take longer to settle their bills than medium-sized and small businesses.’
He added: ‘The problem for smaller suppliers is exacerbated because they are often under pressure to settle their own bills quickly to secure goods and supplies essential to their business.’
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