(Reuters) - Procter & Gamble Co (PG.N) plans to increase the time it takes to pay its suppliers by as much as 30 days, which could free up to $2 billion in cash, the Wall Street Journal reported, citing people familiar with the matter.
The world's largest household products company is seeking to pay its bills in 75 days from the average of 45 days it takes currently, the paper said. (link.reuters.com/nuq47t)
P&G recently began negotiations with its suppliers about the new payments terms, which are expected to be implemented over three years and could affect hundreds of companies, the Journal reported.
To help P&G’s suppliers cope with changes, the company is working with banks to offer cash to suppliers after 15 days from delivery for a fee, the paper said.
P&G could not be immediately reached for comment outside of regular U.S. business hours.
Reporting by Garima Goel in Bangalore; Editing by Mark Potter