The Danish brewing giant Carlseberg has been criticised for changing the terms for paying suppliers to 95 days.
The Forum of Private Business (FPB) said that means companies could be waiting for more than 120 days before Carlsberg settles a bill issued early in the month.
The FPB has sent a letter to Carlsberg UK Ltd’s chief executive Isaac Sheps highlighting the issue and urged the group to sign up to the Government’s Prompt Payment Code - www.promptpaymentcode.org.uk
Matt Goodman, the FPB’s policy representative, said: “Carlsberg’s incredible terms mean that many of its suppliers could be waiting more than four months for payment.
“That is a long time by anyone’s standards; most of the businesses in our Hall of Shame have been exposed for taking between 40 and 60 days to pay their suppliers. A small firm delivering a major order to Carlsberg could easily go out of business with cash flow problems while waiting for the money owed to it.”
He added: “This is clearly highly unfair to businesses lower down the supply chain, which are effectively providing interest-free credit to this multinational company.
“We would urge Carlsberg to think again about the amount of time it takes to settle its bills and remember that it may also be shooting itself in the foot. By operating such lengthy terms, Carlsberg is limiting the amount of firms willing to join its supply chain.”
David Scott, Carlsberg UK’s customer marketing director, said: “Carlsberg UK has recently implemented a policy to extend payment terms to 95 days across all of its suppliers.
“All suppliers’ situations are reviewed in light of this extension, and if there is a business case made as to why these payment terms are not acceptable, we will then work with our suppliers to reach terms that are agreeable to both parties.”
