Dell named and shamed in late payment debacle

Dell has been criticised for extending the time it takes to pay suppliers by an additional 15 days.

Dell has been criticised for extending the time its takes to pay suppliers by an additional 15 days.

The US tech monster has written to them to warn that from 10 July it is "standardising its payment terms across its supplier partners' due to the challenging economic conditions, meaning that it will now settle debts after 65 days.

As a result, The Forum of Private Business (FPB) has entered Dell into its Hall of Shame of late payers, alongside Argos, United Biscuits and Carlsberg.

"Small businesses continue to suffer from the blight of late payment, which devastates cash flow and forces firms into administration," said a spokesman for the FPB.

"Companies like Dell have a responsibility to pay promptly - failure to do so can mean the whole supply chain seizes up," he added.

Small suppliers have no option but to grin and bear changes to terms and conditions from multi-national firms including Dell but the FPB urged the Government to tackle this issue.

"For the sake of small businesses and the economy the new Government must prioritise tackling the culture of poor payment, addressing the bully boy behaviour of these bigger companies," said the FPB man.

According to Bacs figures, more than £30bn of outstanding payments is currently owed to small businesses in the UK.

The 65-day payment term already applies to production procurement said Dell but it was standardising the schedule for other firms including telecommunications companies, those in insurance, financial services and services vendors.

However it added: "The standard does not apply to certain exempted diverse suppliers, including many certified small vendors, whose terms can be shorter, generally ranging from 20 to 45 days."



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