Dell fingered over UK payment terms

Forum of Private Business enters Dell into Hall of Shame after vendor increases payment terms for UK suppliers

Cheque mate: Dell has standardised payment terms from 50 to 65 days

Dell has had its knuckles wrapped by a small business group after extending its payment terms for UK suppliers by 15 days.

The Forum of Private Business (FPB) is entering Dell into its late payment Hall of Shame after the vendor informed suppliers that it is standardising its payment terms from 50 to 65 days from 10 July.

In a letter to suppliers – which was passed on anonymously to the FPB – Dell attributed the change to “current economic conditions”.

However, the FPB claimed the move could heap more cashflow misery on small firms.

FPB spokesman Phil McCabe said: “Small businesses continue to suffer from the blight of late payment, which devastates cashflow and forces firms into administration. Companies like Dell have a responsibility to pay promptly – failure to do so can mean the whole supply chain seizes up.”

Dell will take its place in the FPB’s Hall of Shame alongside other household names including Argos, United Biscuits and Carlsberg.

The FPB said it had written to inform Dell of the move and has also invited the manufacturer to sign up to the government’s Prompt Payment Code.