NEWS

Covid-19 scams and withheld payments cause issues for suppliers

Published on: 30th March 2020

Toy World has been alerted to a scam email regarding stock, as well as genuine communications regarding payments.

We have received information that an email is being sent to suppliers requesting stock, purportedly from Sainsburys. With poor spelling and grammar, hallmark giveaways of a scam communication, the email claims that the retailer is urgently looking for new suppliers of all kinds of products with immediate availability.

Part of the email reads: “Please send us your catalogue or your website through email to speed up the process and treat this email as urgent. We hope to be able to order with you and start a long-term friendly, respectable and solid business partnership. We count on the reliability of both sides. We commit ourselves for successful and professional processing for good cooperation in all ranges.”

Payment terms claim to be 15 days for the UK, which is a bit of a giveaway in the current climate!

Indeed, suppliers are facing many challenges at the present time, without the worry of being targeted by fraudsters.

Other sources have shared news that some large retail accounts are calling a halt on invoice payments, or have suddenly extended agreed credit terms, in some case from 30 days up to 90. This has naturally frustrated smaller companies which rely on liquidity to survive, especially as government financial support has been made available to most businesses, including these large retailers.

Some suppliers have been forced to contact their MPs to draw attention to the practice of non-payment despite claiming government assistance. The toy companies that Toy World has spoken to believe that all parts of the supply chain are of equal importance, that every company should consider the financial support packages available and, most importantly, work together with their partners to ensure businesses are protected across the spectrum.

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