Woolworths stretches supplier payments to save cash

 In Australia, NewZealand, Woolworths
Woolworths is planning to stretch out payments to most of its food and grocery suppliers to 60 days – two or three times the payment terms at Coles –  in an attempt to free up cash and improve working capital.
Industry sources said Woolworths had a project team in its supermarkets division reviewing suppliers’ terms of trade and identifying "legacy" suppliers on 30-day terms who can be pushed out to 60 days – double the 30-day terms Woolworths expects from its own debtors.
While the project could alleviate pressure on Woolworths’ cash flow, it threatens to antagonise suppliers who have criticised Woolworths for paying bills well outside trading terms. Sydney Morning Herald – Read more…

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