This is borderline illegal. Suppliers are legally entitled to charge for interest at payment which take over 30 days. Of course, the relative size of supplier and buyer means that few suppliers feel able to exercise this option (alienating the buyer) and this allows the larger institution to ‘bully’ in this way. Do you think the government will be mentioning it? The line about maintaining Tesco’s cashflow is plain hilarious. Corporate action of this sort is one of the ‘invisible’ effects of the hard economic times the country is going through. Via Lloyd.
UPDATED: 1pm. More evidence of what is going on in the real economy. This story nails the impact that our current system of non-personal relationships between business (producer) – buyer – and large financial institutions can easily lead to. The story is from The Daily Telegraph.