The Channel logo

News

By | Team Register 30th June 2010 13:32

UK small firms better get used to Dell's 65-day payment terms

Interest free?

Dell has insisted that its decision to extend its payment times will not affect small businesses in a range of countries - none of which are the UK.

The slightly troubled PC giant announced earlier this week that it would stretch out standard the time it waits before cutting a cheque to its suppliers to 65 days, instead of the previous 50.

The change was enough for the UK's Forum of Private Business to immediately induct Dell into its late payments Hall of Shame.

Dell did not initially enlighten us to the effect of its decision, but subsequently contacted us to explain the change.

"The 65-day payment term is being put in place on a global basis for Dell’s non-production procurement, which includes vendors such as telecommunications companies, insurance companies, financial services, services vendors," a spokesperson explained.

This would bring them in line with its product procurement suppliers, the spokesperson said.

However, they added: "The standard does not apply to certain exempted diverse suppliers, including many certified small vendors, whose terms can be shorter, generally ranging from 20-45 days."

It will also not apply in countries where there are "restrictions" such as France, Japan, Korea, India; or in some countries such as Brazil in which credit costs are very high.

It would appear that "exempted diverse suppliers" refers to companies in the US, leaving British small firms out in the cold. Small firms in the UK might be assumed to have little in the way of French, Japanese, Korean, India or Brazilian outposts.

In other words, the UK's small firms will just have to suck it up. ®

comment icon Read 16 comments on this article alert Send corrections

Opinion

Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world