VoxComm, the global voice for communications agencies of which IPA is a founding member, is warning agencies and clients of the damaging consequences of extended payment terms. Many agencies, being people businesses, do not have the financial resources to fund months of payroll. Simultaneously, extended payment behaviour harms the agency-client relationship and negatively impacts brand reputations. Some marketers have abused their power to impose egregious extended payment terms on agencies, which agencies can fund only by increased borrowing. Borrowing is expensive and harmful to the long-term sustainability of agency businesses…
Read MoreVoxComm warns of damaging consequences of extended payment terms
