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Procter & Gamble Co., the world’s biggest advertiser, is preparing to lengthen the time it takes to pay agencies — a move that will ripple through the industry in years ahead.

The policy stretches payment terms to 75 days from the previous 45 across a wide range of vendors, according to people familiar with the matter. P&G is softening the blow of the move, originally reported by The Wall Street Journal, by helping suppliers get paid in as little as 15 days by banking on the company’s strong credit rating to get financing at lower rates.

P&G Global Brand Building Officer Marc Pritchard said the new policy will be implemented with agencies as new contracts take effect. He added that it’s similar to moves other companies are making.

Continue reading at AdAge.com