Farmers, food makers and other small businesses will be paid early as they deal with coronavirus impact.
Morrisons is set to make immediate payments for its smaller suppliers to help them during the ongoing coronavirus pandemic. The grocer said the faster payments will support cashflow during a difficult time for the British economy.
Morrisons is temporarily re-classifying a smaller supplier from those with £100,000 of business per year with the company to those with £1m of business. The retailer said this means an extra 1000 small food businesses will qualify for the new payment terms. The move will help businesses that provide up to £1m of turnover with Morrisons.
Morrisons has around 3000 small suppliers that will benefit from the immediate payments. The retailer said it would start the temporary payment terms next week and the move is expected to last until the end of May before being reviewed.
Morrisons chief executive, David Potts, commented: “We’re a British family business and we will be doing our best to support (small suppliers) through this challenging period.”