Foodstuffs confirms small and medium suppliers will move to 10-day payment terms
FSNZ
Foodstuffs North Island Ltd
and Foodstuffs South Island Ltd have announced they will be
providing the option for small and medium suppliers to move to
10-day payment terms - this change is available for all invoices
received during the four-week lockdown and for a further three
months.
We recognise it is tough out there for many businesses at the
moment and we want to make it as easy as possible for our valued
suppliers to keep trading - they are critical to our business and
we want to help them by taking a bit of pressure off them
financially.
By paying our small and medium suppliers faster we hope to give
them more financial certainty and business surety during the
challenging COVID-19 climate. The Foodstuffs co-operatives have
already worked with a number of their suppliers, both small and
large, to help them with cashflow since the beginning of COVID-19
and the companies commit to continue to do this as appropriate.
Foodstuffs North Island and Foodstuffs South Island have
confirmed they will:
- Provide a 10-working day payment cycle from the date of receipt
of a valid invoice, to SME businesses that contact the company
requesting these terms
- Commit to a target of 95% of payments being paid within 10
working days of receiving a tax invoice and will make every effort
to achieve this
- Use the guidance provided via the MBIE website to review and
accept request for changes to payment terms
- Commit to providing these terms to SMEs for the 4-week
lock-down period, and the three months following this as a way to
assist SMEs with returning back to normal operations.
Small to medium sized enterprises (SMEs) are defined by MBIE and
further information can be found on the
MBIE website
(https://www.mbie.govt.nz/business-and-employment/business/support-for-business/small-business).
The Foodstuffs co-operatives are 100% committed to supporting
local SMEs, similar to our owner-operated supermarkets they are the
backbone of the New Zealand business community. Their continued
success is incredibly important to nurture if New Zealand is to
come out positively from the COVID-19 crisis. Doing our part to
help them continue to successfully deliver to our customers and
keep their valued team members employed is very much front of mind
across the two co-operatives.
Offering a 10-working day payment cycle sends a strong message
our SMEs are valued and helps ease some of the financial pressures
some suppliers may be under.
We encourage our small and medium suppliers to reach out to
their relevant Foodstuffs North and South Island contact and begin
a conversation if they would like to take up this offer.
