The supplier companies are being paid after up to 180 days
The president of the Chilean Association for Factoring, Germán Acevedo, remembers that some time ago the local salmon companies usually paid to supplier companies between 70 and 75 days after invoicing. Now, the same companies are paying up to 180 days after invoicing.
According to an interview published by La Tercera, Mr. Acevedo explained that these late payments respond to the low salmon prices seen in most relevant markets which impact on the liquidity of the companies. However, he explains that these late payments do not mean default in payments.
He also commented that this situation is common to all salmon producing companies. Besides, he thinks that if salmon prices remain low for a longer time, further restructuring will be needed and therefore, more mergers and acquisitions might be seen in the local salmon industry.
Finally, he says that this sector is a cyclical business. That would be the reason why factoring companies keep supporting this industry. "Today, the problems with price basically respond to overproduction. Several experts claim that this situation will remain unchanged during the first half-year to start improving in the second one. This will depend on the actions of the companies themselves," he concluded.
