Force India has requested an advance on their championship payments due to an expected cash short-fall during the winter off-season.
Currently, the ten Formula 1 teams receive a monthly payout from Formula 1 Management (FOM) between the months of February and November.
The payment schedule creates a large deficit in cash flow between December and January for many of the midfield and back marker teams, with all outfits coming under additional pressure from external suppliers to settle outstanding balances.
With Caterham folding at the end of the 2014 season, and Manor’s near exit under the previous guise of Marussia last year, supplier have become less lenient with late payments to make up for the shortfall of cash.
With this, Force India deputy team principal Bob Fernley has stated his team has approached Bernie Ecclestone for an earlier payment, which will still need to be agreed by the other nine teams.
“We start to lose payments as soon as a season finishes,” Fernley told Autosport.
“So what we’re trying to do is balance things better, get a better cash flow, because cash flow over the winter for us is the worst time.
“But this is not necessarily about us, it’s about making our suppliers’ lives a bit easier. They are under a lot of pressure, and can be stretched too far, especially when other teams are struggling as well.
“We’re trying to get ahead of our programme, as opposed to last year when we were slightly behind it.
“We just have to be pragmatic because if we know now we’re going to have to tighten up a bit then we have to act.”
Discussion about this post