Morrisons to extend immediate payments for small suppliers to September

• Morrisons says it will extend immediate payments until September 

• It has also changed its definition of ’small suppliers’ to allow 1,000 more businesses to qualify for the terms

Morrisons is to extend its emergency payment terms to smaller supplies for a further three months, as they continue to face the threat of a cashflow crisis because of the impact of coronavirus.

In March, Morrisons became the first retailer to announce it would make faster payments until the end of May, to help small food makers and farmers struggling because of the impact on the supply chain –- a move which was followed by action by several other retailers.

Today Morrisons said the continued shutdown of the hospitality and foodservice sector was still having a huge impact on suppliers, and that it would extend immediate payments until September.

As well as the immediate payments, Morrisons has also temporarily reclassified ‘smaller suppliers’ from those with up to £100,000 of business a year with the company, to those with up to £1m, which meant an extra 1,000 small food businesses qualify for the emergency payment terms.

“Small food makers and farmers have helped us to play our full part in feeding the nation,” said Morrisons CEO David Potts.

“They have told us they face continued financial pressure and we want to be there for them during this challenging period.”

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. So, 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.

“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.”