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.
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“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.