Brands alter payment terms on back of Covid-19

HONG KONG – Apparel buyers are extending payment terms by up to 30 days for Bangladeshi suppliers as they seek to minimise the impact of Covid-19 on their business operations. Apparel Insider has seen several pieces of documentation in which leading brands inform manufacturers that payment terms for apparel -which has already been made – are extended by 30 days. Manufacturers on Bangladesh are already reeling due to the fact that many payments from brands to suppliers go through Hong Kong, however, with many people from Hong Kong minimising office time due to Covid-19, payments are not being made, or significantly delayed.