According to the Wall Street Journal Procter & Gamble is currently negotiating with its suppliers to lengthen the payment period of invoices with a maximum of thirty days. At the same time the company is talking with some banks about a system of compensation.
From 45 to 75 days
At the moment Procter & Gamble pays his invoices after a maximum of 45 days. According the American newspaper Wall Street Journal, the company has started negotiations to raise that period to a maximum of 75 days. Thanks to this procedure an estimated cash amount of two billion dollar (1.5 billion euro) would come available.
The new arrangement, which will probably come into use in three years, would affect hundreds of companies. In an attempt to help them with the transfer to the new payment plan, Procter & Gamble has started talks with a number of banks. They could pay suppliers in cash within fifteen days after delivery, provided they pay a compensation.