BHP will reduce payment terms for small, local and Indigenous businesses as part of a program to support its communities and regional economies during the Covid-19 pandemic.
BHP will make immediate payments of outstanding invoices. The accelerated payment program is expected to deliver approximately $100 million more quickly into the hands of our small business partners.
BHP will reduce payment terms to seven days (from 30 days) for more than 1,100 small Australian businesses with immediate effect.
BHP CEO, Mike Henry said looking after the well-being and safety of its people, communities and partners is the highest priority.
“We are taking action to reduce the risk of transmission at our sites, in our offices and in our communities. Our local and small business partners play a critical role in supporting our operations and our people, and we know this is a very difficult time for them. We must look out for each other as we manage through this together,” Mr Henry said.
BHP has also created a $6 million fund to support its labour hire companies and their employees. The fund will be used for one-off payments for people quarantined after entering Australia and pay for labour hire employees not entitled to sick leave but affected by COVID-19.
BHP spends around $1.5 billion annually with local Australian suppliers.
A small business is defined as generating less than $10 million revenue, restrictions on FTE numbers have been removed.
The revised payment terms arrangements will take effect next week. BHP will contact eligible small business partners with more information in coming days.