Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

I am a small boutique owner and struggle keeping up with payment plans. What advice would you give to anyone in my position to help them stretch their payment plans as much as possible?

It’s key to speak to your supplier at an early stage if you think there will be problems. So many brands have automatic processes these days that pass ‘delinquent accounts’ onto debt recovery agencies and you could find yourself blacklisted with a supplier and have no access to next season’s ranges. With trading being so tough, many brands are willing to be more flexible than they might have been only a year ago and are more prepared to work with smaller retailers as you are part of the process that will help us all towards the recovery.

Sandra Halliday,WGSN Global Managing Editor, WGSN

Readers' comments (2)

  • Thierry Bayle

    As I have been involved in wholesale before I agree with Sandra and can say that brands will be flexible as long as you do not want to exceed the start of the shipping of the next season.
    As you indicate "payment plan", it would sound like you have taken already as much as a brand can reasonably give you ( up to end of June/ July to pay for SS goods for example ).
    so I would strongly recommend you look into why your cash flow is tight:
    * Is you buying wrong?
    * Are you overstocked? In which class? When do you find out about being overstocked? If it is only at the end of the season, this is too too late! What do you do about it?
    * Have sales being affected due to the recesssion? Did you re-align expenses on those new sales?
    * Buy less and try to turn the goods more quickly.
    ... So much to say and to look at ( retail is detail ... ).

    Please act now to revisit the way you do things. There is always a way out.
    All the best of luck.
    Thierry Bayle

    Unsuitable or offensive? Report this comment

  • It's good that Mr Bayle asks the stores to look at themselves rather than to the brands. Too many times retailers are using brands like banks and taking (without asking) months of interest free loans on the products. Most companies have 30 days payment terms but it very unusual for some stores to pay in this time frame. They then wonder why brands start getting heavy over payments when it gets to 90 days. Do retailers not think that brands have bills to pay and if they behaved in the same way manufacturers would not work with them.
    Of course brand are sympathetic to the retail environment but we are all in business and want to survive. It's about time retailers took responsibility for their own actions and not just dump it back on the brands.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.