Quote:
Originally Posted by Kiwi3
So what, this is nothing new! Lots of very large profitable companies are slow at paying invoices.
|
its all to do with counterparty risk - if your c/p has a strong stand alone financial standing then you can take an informed credit stance on the lateness of the payments, however if the financials are less clear than you are forced to take a more defensive stance. Vague spurious connections to Dubai is possibly a little to tenious a counterparty risk for some suppliers to provide extended credit.
I would have thought a more intelligent stance would be to show rapid payment in the early stages in the absence of a strong balance sheet and that way whilst reputation is being established they are fewer critics...
just a thought as I am an investment banker rather than in the industry!