The UK’s biggest supermarket chain has responded to criticism by pledging to speed up payments to its suppliers.
Tesco’s chief executive, Dave Lewis, said that from next June the company would ensure that payments to its smallest suppliers that deliver up to £100,000 of products annually went out within 14 days. He also promised a “simpler” payment model for the 2,000 firms that supply Tesco, which include a number of small family-owned businesses.
Medium-sized suppliers providing up to £10m of products per year, will have their accounts settled within 23 days and major suppliers will have to wait no more than 28 days.
The company hopes that the move will improve its reputation after accusations were made that it deliberately delayed payments, employed unacceptable methods in booking commercial income from suppliers and routinely flouted industry standards on payments.
Data from Swift’s latest RMB tracker shows exceptional growth in RMB adoption in the United Arab Emirates (UAE), witnessing a 210.8% growth in payments value of the currency since August 2014, albeit from a low base.
SWIFT has announced that it has successfully completed the first phase of the global payments innovation (GPI) initiative pilot, clearing the way for the go-live of the service in early 2017.
Despite faster payment technologies, business-to-business payments by paper cheque show no sign of decline from three years ago.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.