Supermarkets Offer Extra Support To Suppliers

Supermarket giant Asda is introducing new measures to help suppliers who are struggling through the economic downturn.
The Wal-Mart owned retailer has signed up to the government’s Prompt Payment Scheme – a voluntary code of practice launched earlier this month by Business Secretary Peter Mandelson in an effort to ensure suppliers are paid on time and that firms do not later change terms.
A spokesman for the company said: “This is further evidence of our commitment to paying every supplier on time.”
Asda already works with a selection of small suppliers whose payment terms are within 30 days and it also offers a “Pay Me Early” option that allows suppliers to request a one-off early payment.
“In today’s tough economic climate, this added facility allows suppliers access to short term cash flow, giving them more flexibility over their finances if and when they need it,” the spokesman added.
Tesco, which currently offers an “open door policy” for suppliers who are worried they may run into problems, has also signed up to the Prompt Payment Scheme .

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