Retailers Tesco and Asda have signed up to a UK government scheme, launched earlier this month, that aims to ensure retailers pay suppliers on time.
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The Prompt Payment Scheme, launched by Business Secretary Peter Mandelson, is a voluntary code of practice that will act as a benchmark against which smaller suppliers can judge their customers.
Tesco confirmed today (22 December) that it has already signed up to the scheme, while Asda told just-food it has also set up its own initiative called ‘Pay me Early’.
The scheme is an “optional facility”, the retailer said, that allows suppliers to request a one off early payment, should they need to.
“In today’s tough economic climate, this added facility allows suppliers access to short term cash flow, giving them more flexibility over their finances if and when they need it,” a spokesperson for Asda told just-food.
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