Long Payment Terms Plague Small Vendors, Further Burdening Minority- and Women-Owned Companies

Business leaders called for change at GSD&M's summit this week in Austin, Texas

Experience ADWEEK House at Cannes, June 16-19. We’re celebrating 45 years of reporting with Now and Next—a creative opportunity for brands to define who they are and their future in the industry. Register .

As the industry grapples with a reckoning on payment terms and the request for proposal (RFP) review process, diverse-, minority- and women-owned companies—those with smaller teams and often without reserves of cash on hand—are often hardest hit.

And while areas of the ad industry brace for an economic downturn and tightened ad budgets, some vendors are extending the time it takes to pay their partners, while others are shortening the RFP process and calling for quicker turnaround times for campaigns, putting pressure on smaller outfits.

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in