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Cash-strapped FTSE 100 companies delay payments to suppliers during Covid crisis

SME business leaders warn blue-chips are passing the burden of the economic crisis onto smaller companies
Cash-strapped FTSE 100 companies delay payments to suppliers during Covid crisis
  • Investors’ Chronicle analysis reveals how payment practices have slipped at companies in some of the sectors hit hardest by the pandemic
  • But withholding payments to suppliers comes with financial and increasing reputational risks

A handful of FTSE 100 companies have significantly delayed payments to their suppliers during the coronavirus pandemic, analysis of public documents reveals, amid warnings that large companies are passing the burden of the economic crisis onto smaller businesses.

Filings submitted to the government show that several blue-chip companies and their subsidiaries, including those of British Airways-owner International Airlines Group (IAG), have been taking far longer on average to pay invoices than before the pandemic.

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