Aldi helps over 400 suppliers by reducing payment terms

 
Helen Cahill
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Aldi is aiming to open 1,000 UK stores by 2022 (Source: Getty)

Aldi is shortening its payment terms for small suppliers, helping out 400 UK businesses.

The German discounter will be reducing its payment terms to 14 days for suppliers with which it trades up to £250,000 worth of goods. The new terms will apply from 11 September.

Aldi said the move was just one of a number of actions it is taking to help suppliers, which have been impacted by rising import costs from the devaluation of sterling.

Read more: Look out Amazon: Aldi's getting into online grocery delivery in the US

The supermarket is also making sure it sticks to regular buying patterns, and ensures it is giving suppliers assurances on the cost and volume of goods it is buying before suppliers make financial commitments.

Tony Baines, managing director of buying at Aldi, said: "Our relationships with suppliers are based on longevity and trust.

"We have worked with many of our current suppliers since we entered the UK market more than a quarter of a century ago, and are always looking for ways in which we can work more effectively with them."

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