Credit terms relax as lockdown eases
However, some wholesalers remain cautious in extending or offering new credit terms to retailers
Wholesalers and suppliers are relaxing credit terms as availability across the industry is returning to normal levels.
During the start of lockdown, suppliers and insurers reportedly restricted the credit terms available to wholesalers and retailers, placing further pressure on availability.
However, wholesalers told betterRetailing that credit insurers have now relaxed their terms. DeeBee Wholesale trading director Andy Morrison said: “During lockdown, there was a bit of tightening of credit limits, but that was due to the historic limits in place.
“The increased demand meant a lot of businesses in the industry were asking for increased limits to secure more stock and some businesses have got those now.
“It’s been a bit of a blessing in disguise, really. Convenience retail is less risk averse than other sectors. Pretty much all our customers have been cash-positive during the pandemic.”
Morrison’s comments were echoed by various senior symbol group bosses. One said: “There was a problem with getting trade credit insurance previously. There are still issues, but it’s not filtering down as much.”
However, wholesale expert David Gilroy said there was still some caution among some wholesalers in extending or offering new credit terms to retailers.
One retailer told betterRetailing that United Wholesale had become more prompt in asking for retailers to pay for goods owed.
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