Aldi has reduced payment terms for over 200 of its small and medium-sized food and drink suppliers in Ireland to support their cash-flows during the coronavirus outbreak.
The discounter, which announced a similar move in the UK last week, said that Irish suppliers that transact up to €1m worth of business with it annually would benefit.
The shorter payment terms of five days for products sold across its 142 stores in the country are effective immediately and will be in remain in place for the duration of the crisis. Since 2017, Aldi has had 14-day payment terms with small Irish suppliers.
John Curtain, Aldi Ireland’s Group Buying Director, said: “Over the last few weeks our suppliers have experienced unprecedented difficult circumstances. Their teams have worked around the clock to provide the products to keep our shelves stocked for customers, and we want to help them in return.”
“Our new shorter payment terms mean over 200 Aldi suppliers will have their invoices processed immediately and payment made within five days. This will greatly assist with their cash-flow requirements, and in turn, help them pay their farmers and suppliers along the chain on time.”
NAM Implications:
- A pointer for all (cash-rich) retailers…
- Especially given the resulting goodwill later.
