Peacocks makes changes to supplier payment terms

Discount fashion chain Peacocks is increasing the maximum time it takes to pay for shipments from 90 days to 130 days in a move that aims to see suppliers paid faster.

In a letter written to suppliers and seen by the Sunday Times, it was revealed that suppliers would now be using finance company Tradewind which will pay their invoice in seven to 10 days for a fee of 2.25 percent per invoice. Peacocks will then pay Tradewind after 130 days.

"Our relationships with our suppliers are fundamental to the business and we always seek to provide our partners with quick and simple payment," A spokesperson for Peacocks said in a statement."The deal we have negotiated with Tradewind means that suppliers are guaranteed to get paid in 7 to 10 days, which is quicker than anyone else on the high street and at better rates than they could access elsewhere."

The statement continued: "This change also enables us to better unify terms across our business as well as simplify the payment process."

Peacocks, which currently has about 500 shops across the UK, was acquired out of administration by Philip Day for 23 million pounds in 2012. The chain is now part of the Edinburgh Woollen Mill Group.

Photo credit: Peacocks, Facebook