4A’S URGES AGENCIES TO STAND AGAINST LONG PAYMENT TERMS

In a new report, the trade organization also advises shops against supply chain financing and warns it’s hearing of 180-day payment terms
By Lindsay Rittenhouse

The 4A’s is urging ad agencies to take a stand against long payment terms as marketers increasingly push for 120- to 180-day payments.

In a new report, “The Ripple Effect of Extending Payment Terms,” the trade organization representing U.S. ad agencies lays out why these long payment terms are not sustainable for shops or conducive for creating good partnerships. It also urges agencies not to accept supply chain financing, a program clients are increasingly leaning into.

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