Tesco changes payment terms for small Irish suppliers

Tesco Ireland is temporarily changing its payment terms to ensure that small, local suppliers get paid as quickly as possible during this Covid-19 crisis, the retail giant has announced.

Invoices will now be processed within five days as opposed to the current 14 days under the new arrangement.

Announced on Friday evening, March 20, this change will commence from Wednesday, March 25, for a three-month period for over 200 small Irish food and drinks companies, the retailer revealed.

Joe Manning, commercial director of Tesco Ireland, commented, stating: “We recognise this is a particularly challenging time for the whole industry, and especially for small businesses in terms of their cash-flow requirements.

“These are local, often family-run businesses, in communities all around the country; and, to assist them at this time, we will be initiating payment of invoices as we receive them.

“We appreciate the support of our suppliers as we work together to get through this, and we want to support them in return,” Manning added.

This change in payment terms will remain in place until Wednesday, June 17, the retailer says.

Tesco Ireland said it continues to work closely with its suppliers to respond to the current situation, to support their businesses and together to serve its customers.