Alliance Boots screws it’s suppliers

The pharmaceutical retail giant with 3,000 stores in the UK has horrified it’s suppliers by writing to them all to change their payment terms to 75 days from the end of the month in which the goods have been delivered. This means that they could be taking credit of over three months for anything delivered in the first half of the month.

To add insult to injury, not only are Alliance Boots asking their suppliers to bankroll them but they are now insisting on taking a 2.5% settlement discount for “prompt payment”

I have a sneaking suspicion that we will be receiving a few enquiries for factoring and invoice discounting from Alliance Boots customers as they will no longer be able to fund their sales without additional help.

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