News Stories to Help Illustrate Your Exam Answers:

The UK government’s small business ambassador recently (7 April 2014) highlighted the issue of extended payment terms, as part of a report on the issues facing small and medium-sized enterprises (SMEs). A recent survey by a debt recovery agency revealed that 88% of British businesses are affected by late payment – and almost half are forced by the cashflow pressures to pay their own suppliers late as a result. The construction sector suffered the longest delays in payment beyond agreed credit terms (24 days) and manufacturing the shortest (20 days). You might like to think how this impacts on SME supply chains – and on vulnerable lower-tier suppliers in developing markets – as an ethical and responsibility issue (as well as a relationship management issue)…

http://www.supplymanagement.com/news/2014/late-payment-not-ethical-or-right-says-businesswoman-karren-brady

http://www.supplymanagement.com/news/2012/late-payment-by-councils-a-curse-for-small-firms

http://www.supplymanagement.com/analysis/features/2007/buy-now-pay-later