Wal-Mart Offers Clothing Vendors Faster Payment Scheme

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Wal-Mart Inc over the weekend unveils its new payment option for ailing vendors and retailers. Unlike the old payment scheme, which could take 60 to 90 days, clothing vendors can now get payment after 10 to 15 days from the delivery date.

Wal-Mart officials said that the move is part of the program that would help the market get back on track in the wake of the recession.

World’s biggest retailer store chain Wal-Mart Inc. has launched a new and faster way of paying its vendors, which could help the ailing clothing market get back on track at the soonest time possible.

The latest development in the retailer’s payment scheme will cover more than 1, 000 clothing suppliers and other struggling retailers and vendors, a report released on Sunday said.According to the report, instead of getting paid on the usual 60 to 90-day, retailers and vendors can now be paid within 10 to 15 days after they have delivered the goods to particular Wal-Mart outlets.

Wal-Mart spokesman John Simley said that the new payment scheme has been a welcoming development for vendors as demand falls. However, the official refused to state how much the suppliers have to sacrifice for the faster and easier payment program.

Also, Simley said that the new program is necessary for the retail giant as well as the vendors following the downfall of major retail lender CIT Group Inc due to bankruptcy. This led to serious questions on where vendors can get their financing to fill orders, especially with the holiday season fast approaching.

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Wal-Mart Offers Clothing Vendors Faster Payment Scheme

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