Tesco has stated that improved payment terms for its smallest suppliers will remain in place until the end of February 2022.
The UK’s leading grocer, along with the likes of Aldi, Morrisons and Sainsbury’s, introduced improved terms at the start of the pandemic to help firms with cashflow during a period of disruption and uncertainty.
Tesco’s latest commitment means more than 1,300 of its smallest suppliers will continue to have their invoices paid immediately, instead of the usual 14 days.
Chief Product Officer, Ashwin Prasad said: “It’s vital we continue to do all we can to support the smallest suppliers we partner with throughout this uncertain time. I’m delighted we’ve been able to give them the long-term certainty they need, by extending these improved payment terms until the end of February next year.”
Earlier this month, Aldi confirmed that its immediate payment scheme for small suppliers will be extended until the end of this year.
NAM Implications:
- Given the post lockdown issues in the post-lockdown issues in the small-supplier pipeline…
- …a pointer for all retail mults and discounters.
