It is suggested that Tesco takes in excess of 100 days (on average) to settle accounts with small business suppliers, according to data analysed by fintech firm Ormsby Street.
The firm said Tesco is the “worst offender” and takes an average of 105 days beyond terms to pay invoices to these suppliers.
Across the 20 retailers Ormsby Street analysed, it found the average time they take to pay an invoice is 45 days. Tesco takes more than double this amount of time.
Ormsby Street conducts analysis of credit data on behalf of small businesses and gathered this specific data from Experian.
The data used in this research, which focussed on UK retailers, was conducted during the quarter ending October 2016.
Iceland and Debenhams were next on the list for taking the longest time on average to pay invoices to small businesses – at 75 and 73 days respectively.
Fortnum & Mason, the high-end department store, came out as the best retailer in terms of paying its invoices with an average of five days.
Source: Insolvency News
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