Morrisons extends immediate payments to small suppliers

Supermarket chain Morrisons said it was extending immediate payments to its 3,000 smaller suppliers until September to help them through the ongoing coronavirus pandemic.

The continued closure of the hospitality and food service sector meant that many small businesses continue to suffer cashflow problems, Morrisons said on Monday.

“Small foodmakers and farmers have helped us to play our full part in feeding the nation. They have told us they face continued financial pressure and we want to be there for them during this challenging period,” said chief executive David Potts.

The extension would help businesses that provide up to £1m of Morrisons' turnover, including suppliers of local food and farmers that deal direct with the retailer, such as those providing eggs and livestock.

The Federation of Small Businesses said many small suppliers had seen their payment terms lengthened or cashflow held up as their big clients tried to insulate themselves from the impacts of Covid-19.

FSB national chairman Mike Berry said praised the move, and called for “more positive action like this as the whole business community looks to get back on its feet”.