Woolworths makes earlier payments for small businesses

Woolworths Group is temporarily changing its payment policy to pay small suppliers faster for their goods and services.

Currently, small trade suppliers in Woolworths’ Supermarkets business are paid within 14 days, while across the rest of the Group, payment terms for small suppliers do no exceed 30 days from receipt of a correct invoice or receipt of goods.

Starting today, the payment terms for eligible small suppliers will be aligned across the entire Group (including Goods Not For Resale, BIG W, Endeavour Group and New Zealand) and will not exceed 14 days.

“Our small business suppliers are an integral part of our supply chain and play a key role in helping us provide the products our customers need,” says Woolworths Group Chief Financial Officer, Stephen Harrison.

“By paying our small suppliers faster, we hope to ease some of the financial pressure many of them are currently experiencing amid the uncertainty caused by the coronavirus pandemic.”

Woolworths Group classifies small suppliers as businesses with $1 million purchases by Woolworths and less than $10 million annual turnover – which is in line with the Business Council of Australia.

The revised Small Business Policy will continue until 30 June, 2020 when it will be reassessed based on the situation at the time.

Similar Articles




Most Popular

Industries most impacted by COVID-19

In mid-March over 60% of Australian businesses report being affected by the COVID-19 coronavirus.This is up from a massive 45% points from a month...

Spotlight on Australia’s supermarkets and grocery industry

By Jessica Mudditt.IBISWorld’s ‘Supermarkets and Grocery Stores in Australia’ report describes Australia’s supermarket and grocery industry as “fiercely competitive” and highly concentrated. ALDI’s rapid...

The bakery behind ALDI’s own brand

As ALDI expands into new Australian markets, the retailer is forging new partnerships with suppliers that can meet the high standards of its exclusive...