BHP makes 30-day payment terms standard for local suppliers
Date: Nov 27, 2018
BHP has changed its procurement policies, extending preferred payment terms of 30 days to all Australian businesses in local areas.
The change means that more than 600 local businesses in Queensland and 300 local businesses in New South Wales will receive preferential payment terms from December 1, according to the company.
BHP Billiton Mitsubishi Alliance (BMA) and NSW Energy Coal will introduce the new terms. BMA asset president James Palmer said the decision was made following a period of engagement with suppliers, host communities, the Resource Industry Network and the federal government.
“We’ve heard concerns about the impact of our standard global payment terms on local businesses, and recognise there is more we can do to support our local communities,” Palmer said.
“We will extend our preferential terms further than the existing small and local businesses already captured.”
BHP’s suppliers in a local area like Mackay, regardless of size, will all be placed on 30-day payment terms following the change, helping more than 340 businesses.
