Chocolate bar manufacturer, Mars UK has used a supply chain finance (SCF) scheme to extend payment terms to suppliers. According to the Forum of Private Businesses (FPB) with a new supply chain finance scheme in place, Mars has extended their payment time from 60 to 120 days.
Suppliers are offered the option of being paid a reduced amount within 10 days. Mars UK makes brands including M&M’s, Mars Bar and Bounty.
The FPB sent a letter to the UK government asking the government to step up the campaign for smaller firms to be protected from corporations that are slow to pay their bills.
‘Companies plan their finances years ahead and to suddenly be told you are not going to get paid for another two months by a big supplier can have serious consequences. It can even be potentially fatal,’ said Alexander Jackman, head of policy at the FPB.
Other companies that have been added to the tarty payment ‘hall of shame’ include Debenhams, GlaxoSmithKline, Premier Foods and Monsoon Accessorize, for using similar variations of SCF schemes to delay payment to suppliers.