When recession-stricken big companies pile the pressure on, how do their small suppliers survive?
The credit crunch and general economic gloom are giving some big companies an excuse to squeeze their suppliers. With the Government saying it will pay small firms within 10 days, the UK’s small business associations are calling for similar assurances from the private sector – but the chance of a blanket agreement is remote. For now, small firms must protect themselves. Many smaller suppliers are suffering at the hands of big retailers, but most are afraid to speak out for fear that business will be withdrawn. One business owner suffering a tightening of terms is Jenny Lees, who runs Herefordshire-based DentaNurse. Founded in 1986, the business supplies a range of innovative dental products for the home, such as a first aid kit for teeth, and for professionals. The business is suffering at the hands of Boots since it was taken over by US private equity firm Kohlberg Kravis Roberts in 2007. “Boots always had 30-day payment terms and a 2.5% discount for the privilege,” she says. “For ten
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