Aldi has confirmed immediate payment terms for suppliers will continue until at least September.
The discounter said today no end date had been set for the emergency terms, introduced in March to ease cashflow problems during the pandemic, and they could even last longer.
The extension follows a similar move by Morrisons yesterday.
Morrisons was the first retailer to announce in March it would make faster payments until the end of May. The aim is to help small food makers and farmers struggling because of the new demands on the supply chain caused by the impact of Covid-19. Morrisons yesterday announced its move would continue until September.
Aldi’s emergency terms see suppliers with a turnover of up to £1m paid immediately. Over 1,000 suppliers of the discounter are benefiting.
At Morrisons, the terms are immediate payment for suppliers with up to £1m of business a year with the supermarket. The retailer changed its definition of ‘small supplier’ from £100,000 of business a year to £1m in March in order to include more. It meant an extra 1,000 small food businesses qualified or the emergency payment terms.
Commenting on yesterday’s extension by Morrisons, Federation of Small Businesses national chairman Mike Cherry 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.
“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.”
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