Morrisons extends faster payment scheme for small suppliers
Morrisons will continue to make immediate payments to its smaller suppliers for a further three months to support them during the ongoing coronavirus crisis, the grocer announced this morning.
The UK’s fourth largest supermarket chain introduced the faster payment scheme in March to help small farms and food producers hit by the closure of the hospitality sector with their cashflow.
The payment scheme, which was initially set to run until the end of May, has now been extended to September.
“Small foodmakers and farmers have helped us to play our full part in feeding the nation. They have told us they face continued financial pressure and we want to be there for them during this challenging period,” said Morrisons chief executive David Potts.
Morrisons said it has around 3,000 small suppliers who would benefit from the scheme, including 1,750 farmers.
Mike Cherry, a national chairman of the Federation for Small Businesses, praised Morrisons’ decision to extend the scheme.
“This is what good business looks like in these unprecedented times, and we need to see more positive action like this as the whole business community looks to get back on its feet,” he said.
“Many small suppliers have seen their payment terms lengthened or cashflow held up as their big clients try to insulate themselves from the impacts of Covid-19,” he added.
“It’s refreshing to see a large company like Morrisons championing prompt payment during this national emergency by extending its promise to pay small suppliers immediately,” Cherry continued.
Shares in Morrisons fell as much as 0.46 per cent in morning trading.