Navigation
Support
Search

Shared Items
Purchasing News
« A Better Way to Think About Cost Cutting | Main | Calling All Government Buyers »
Wednesday
Sep022009

Benchmarking Your Payment Terms

DateWednesday, September 2, 2009 at 08:36PM

A recent article in the WSJ provided insight into payment terms for large and small companies. The clear winner of the longest payment appears to be InBev.

image

“Early this year, Anheuser-Busch Cos., owned by Belgian brewer InBev NV, told suppliers it would take as many as 120 days to pay its bills from 30 days previously.”

What the article fails to reveal is the price adjustment paid to achieve the desired payment terms. Most will agree that nothing is free, a supplier will adjust the purchase price to cover the cost of funds as a result of the extended payment terms.

AuthorDaveM | Comment1 Comment |

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (1)

So what do you think is the reason for such a shift? It is undestandable that larger corporation ($5Billion plus) has much more leveraging power. Even a day reduction in Accounts receivable has a huge positive effect on their balance sheet. But, why would smaller companies (Below $500millin) pay faster and collect slower compared to previous year.

Vivek
http://blog.valopia.com
September 10, 2009 | Unregistered CommenterVivek

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.

Notify me of follow-up comments via email.