Wal-Mart offers clothing vendors way to get paid faster amid retail financing anxiety
By APFriday, November 13, 2009
Wal-Mart offers clothes vendors new payment option
SAN FRANCISCO — Wal-Mart Stores Inc., the world’s biggest retailer, is offering its clothing vendors a faster way to get paid.
Wal-Mart, based in Bentonville, Ark., told its more than 1,000 clothing suppliers earlier this month that they would could get paid within 10 to 15 days of delivering goods, versus the 60 to 90 days it took under its customary arrangement.
Retailers have worried whether vendors can get enough financing to fulfill orders amid the tight lending market.
Wal-Mart spokesman John Simley said the new option lets vendors present their bill to a bank, which pays the vendor, then gets paid by Wal-Mart. Simley said it is the first time Wal-Mart has offered the payment option, and so far it is offered only to clothing suppliers.
