Mothercare has launched a new initiative to support its suppliers’ financial health, allowing them to request early payment of invoices.
The retailer will allow suppliers to ask for early payment but will impose a fee in exchange. However, suppliers are able to control the rate of discount and are able to choose if and when they participate in the programme.
Mothercare’s partner for the initiative is C2FO, which is a marketplace for working capital and will be used to facilitate the accelerated payment. Invoice discounting rates are “almost always” lower on C2FO’s marketplace than short-term borrowing costs.
Group product director Karl Doyle said: “Investing in the long-term health of our supply chain complements one of the key pillars in Mothercare’s six-pillar strategy: running a lean organisation while investing for the future.”