In a show of support for small businesses and jobs across NSW, mining company Peabody has committed to 30-day payment terms for all small to medium-sized enterprises (SMEs) supplying the company.
Peabody’s Australian President, George J Schuller Jr said the move recognised the impact that late payments can have on business cashflow, especially for family businesses in regional NSW.
“As a company, we’re committed to working as hard as we can to support the people and businesses that support us,” Mr Schuller said.
“Peabody’s proud to report that, in the past 12 months, 95 per cent of its total spend with suppliers was on 30-day or less payment terms.
“Whether you’re a committed supplier of ours from Mudgee or Singleton, Peabody’s aim is to forge even stronger business relationships with you into the future.”
Mr Schuller said Peabody’s supply team would contact all SMEs that do business with the company over the next few months to discuss a transition to 30-day payment terms.
“Over the past 12 months we’ve taken a good look at our payment performance and we knew we could do better,” he said.
“We found that some businesses were waiting too long to receive payment and we’re on a mission to improve our internal systems to help prevent future delays.
“We wanted to prioritise our small to medium vendors first, because we know being paid on time is crucial to business profitability.
“Peabody sees this initiative as a win-win - we get the high-quality goods and services we need and the small business owners get the cashflow they need to pay staff and buy in materials.
Barry Hebbard Managing Director of Tradecore Industries agreed the move was a positive step forward for small to medium businesses in the Singleton area who do business with Peabody.
“For us ‘cash is king’ and maintaining cashflow through our business is absolutely critical, so Peabody’s announcement is significant,” Mr Hebbard said.
“30-day payment terms helps our business to maintain vital cash flow so we welcome this initiative.”