P&G aiming to free up about US$2B with plans to increase time it takes to pay its suppliers to 75 days from 45 days; new payment terms being negotiated with suppliers, expected to be implemented over three years
RAMSEY, New Jersey
April 17, 2013
(Household and Personal Products Industry)
– Procter & Gamble (P&G) is aiming to free up about $2 billion with plans to increase the time it takes to pay its suppliers by as much as 30 days, according to the Wall Street Journal. The household and personal care company will extend its billing from 45 days to around 75, added the report.
The WSJ noted that P&G recently began negotiations with its suppliers about the new payments terms, which are expected to be implemented over three years and could affect hundreds of companies. To help P&G's suppliers deal with the changes, the company is working with banks to offer cash to suppliers after 15 days from delivery for a fee, the paper said.