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By Lyndsey Cambridge2021-02-23T10:22:00+00:00
Stock stuck in the system is causing wholesalers a cash flow crisis which could have ‘devastating consequences’ for credit ratings
The Federation of Wholesale Distributors is urging suppliers to be flexible with wholesaler’s payment terms ahead of the hospitality restart in April in order to avoid “devastating” consequences to credit ratings across the sector.
The call comes as a growing number of wholesalers are failing to meet suppliers’ payment terms as a result of a cashflow crisis brought about by the latest lockdown. The government this week revealed its plans for the roadmap out of lockdown in England, including the opening of schools on 8 March and the return of the hospitality sector on 12 April, albeit for outside only until at least mid-May. However there are growing concerns that without more flexibility from suppliers, wholesalers will be unable to meet their customers’ orders.