Electronics Production |
Suppliers upset at NOTE
Ericson said last week that the company is changing payment terms for its suppliers from 60 to 90 days. This is because Ericsson wants to improve its cash flow. NOTE’s CFO made a comment about this in a Swedish newspaper called DN.
This comment upset a large number of NOTE’s suppliers, who contacted evertiq. NOTE’s CFO Henik Nygren said in the interview with DN that he is worried about Ericsson’s development.
"Ericsson is an important customer to us so of course we are worried”, Henik Nygren explained.
He also gave critics to Ericsson about its new payment terms. Ericsson now wants to increase the payment terms from 60 days to 90 days.
"90 days in credit is a long time. It means that the suppliers need to account for a increasing part of Ericsson’s financing. It is very hard because this money can be used in a much better way.” Henrik Nygren told DN.
This announcement has upset a lot of NOTE’s suppliers, which have told evertiq, that NOTE several years ago said its suppliers needed to accept 120 days in payment terms.
