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InBev shamed for abusing buying power

Published:  23 July, 2008

Inbev is the latest firm to be named and shamed on the Forum of Private Business (FPB) website.

The brewer has been shamed for changing a small firm's terms for payment from 30 days from the end of the month invoice to 60 days.

FPB's executive chairman Len Collinson branded the change as an "abuse of buying power.

"Suppliers are unlikely to stand up against such unilateral action on payment terms for fear of losing InBev's custom completely.

"Many suppliers of the firm will find it difficult to adapt and will have problems with their cash flow," he said.

InBev in its letter to suppliers maintains that its decision to move payment terms is part of its vision to move from 'biggest to best.' It also wanted to harmonise payments terms across Western Europe.

FPB has shamed over 20 companies online, including Tesco, since the hall of shame was set-up last year.

"An estimated 40% of business insolvencies are caused by late or disputed payments," said the FPB.