VAR Northgate Information Solutions has stood its ground after being blasted for increasing supplier payment terms to 60 days.
However, Northgate has put up a robust defence, stressing that its smallest suppliers were exempt from its move to double its payment terms.
A company representative told CRN: “Many of our smaller suppliers would be independent IT consultants and we have gone to some lengths to ensure they were excluded from this.
“Our suppliers have benefited from their relationship with Northgate, which has grown enormously in the last five years.”
The representative also argued that Northgate was merely responding to changes in its customers’ payment terms.
“We have seen an economy-wide trend for clients to lengthen their payment times and Northgate has to reflect that,” he reasoned.
“If you look at the FPB’s Hall of Shame you can see that a number of large companies are now asking for 90 days.”
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