Buying consortium Cedabond has reported that the profits returned to its dealer members during the past calendar year broke a new record for the organisation.
The group made the announcement as it revealed it will shortly begin offering extended payment terms to dealers while still ensuring suppliers’ invoices are settled in 30 days.
Cedabond admits it had to overcome a difficult start to last year before going on to return more than £1m in rebates to members.
“After a slow start in the first quarter, turnover for the year increased significantly and the profits returned to our members at the end of it were up 18% year-on-year to well over £1m,’ said Cedabond chairman Phil Martin.
He added that over the same period, the organisation grew its membership to over 70 distributors while reducing overheads.
“Over the past 12 months Cedabond has worked hard with members and suppliers to improve both communication and commercial trading arrangements between the two parties and this has undoubtedly led to our members spending more with the suppliers,” he said.
Cedabond recently introduced a payment protection plan for suppliers, to protect them in the event of a member going into administration.
It now intends to provide more flexibility to dealers by launching a deferred payment plan this spring.
The arrangement will allow Cedabond to pay suppliers in 30 days, while giving its members extended terms to take into account the fact that they sometimes have to wait 60-90 days to be paid for contract work.
“This is an industry first designed specifically to help our members and suppliers with their cash flow and confirms our ongoing commitment to helping both parties,” said Martin.