Supermarket chain Aldi has reduced payment terms for over 200 of its small amd medium sized Irish food and drink suppliers.
The company said that the move applies to all suppliers that transact up to €1m worth of business annually with Aldi.
Aldi has said that shorter payment terms of five days will become effective by the end of March. Since 2017 the company has had 14 day payment terms with small Irish suppliers.
The decision was made to help struggling small producers during the COVID 19 pandemic.
The new payment terms are effective immediately and will be in place for the duration of the crisis.
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,” he added.