Grocery Chains Paying Suppliers Faster During COVID-19 Pandemic, According to Creditsafe Data
Company credit report supplier Creditsafe recently reported that many Fortune 500 companies are delaying payments to suppliers – a phenomenon that could help make it harder for the economy to emerge from recession. However, there is one bright point: grocery chains have sped up payments to suppliers.
As Creditsafe puts it, “In these increasingly challenging times for the US economy, it is reassuring to see some good news with data showing supermarkets playing their part to keep their suppliers in good standing. Creditsafe’s analytics unveils suppliers to this industry are now paid faster today than for the same period one year ago.”
Traditionally, companies have tended to keep hold of their money in tough times, and it has become commonplace to see businesses deferring payments to suppliers.
However, Creditsafe’s analysis has shown that grocery chains are leading the way in improving payment speed.
DBT or ‘Days beyond Terms’ is a metric used by commercial credit reference agencies to evaluate a company’s payment behavior.
A recent analysis on millions of transactions shows an improvement from five days DBT to a figure below three, with that trend continuing to accelerate.
The average DBT across the supermarket sector has almost halved from last year with significant shifts from the likes of Publix Supermarkets, Stop & Shop, Trader Joe’s, and Winco. Also, more and more chains are ensuring that suppliers were paid on time or early.
Find out more at www.creditsafe.com.
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