ISN’T IT GREAT HOW OUR MULTI-NATIONAL CORPORATIONS BEHAVE?
Surveys have revealed Fortune 500 companies have showed little patience with customers who do not settle within terms while on the other hand telling their suppliers, “Like it or lump it, we will pay you in 120 days!” Here’s a grand example; debt ridden Anheuser-Busch (remember the In-Bev [Belgian brewer] 100% leveraged takeover) is telling the farmers who grow the hops they will get paid in 120 days and when a small town corner grog shop owner doesn’t settle within thirty days, his credit will be yanked and all deliveries will be COD.
This practice of screwing the customer and simultaneously screwing the supplier, when the average man today doesn’t even get the chance to surface for a quick breath of air really illustrates how mean spirited and miserable Wall Street and their coterie of fans, namely the big multi-nationals are. I could imagine all hell would break loose if Proctor and Gamble told Goldman Sachs they were going to delay settling of $500 million stock buyback by ninety days! Even though large corporations have not been affected by the credit squeeze as smaller businesses, because banks continue to bend over backwards to look after them, the smart-ass boys in the finance departments of the likes of a G.E. have discovered the use of OPM (other people’s money) actually adds $billions to their coffers.
On the other hand the surveys show companies with $500 million revenue or less are understanding and working with those customers who need that little more time to settle, at the same time they, themselves, are valiantly striving to pay their bills within terms. Before the recession these companies paid vendors in an average 42.9 days. Today this has been reduced to 40.1 days. Large corporations are now paying their creditors in average 55.8 days instead of 53.2 in the good old times.
President Obama, just like his predecessor claims small/medium sized businesses are the back bone of America. How about proving it by showing us the color of your money! If there is ever a case of an upside down world is how multi-nationals are so favorably treated when so few even pay any taxes and how discriminated against the little bloke and his business are, when not only do they set out to do the right thing; they actually do it!
-
Share
Our Photos
