Today we have some great news for the thousands of small businesses that supply products and services to Telstra.
Earlier this year CEO Andy Penn made a commitment to change payment terms for small business. We have turned those words into actions. All of our suppliers who we have identified as being small businesses will be moved to 30-day payment terms before the end of this financial year.
Telstra will also become one of the first signatories to the Business Council of Australia’s new supplier payment code, which is being launched today. This new code will help ensure Australia’s small businesses get a fair go.
Telstra spends around $2.9 billion each year with small business suppliers. We understand how important payment terms are for small businesses so that they have consistent cash flow. Changing our payment terms will have a positive financial impact for more than 7,366 small business suppliers who work directly with us each year. This change comes at a cost to Telstra but we believe it is the right thing to do.
Mark Grummisch, business operator from one of Telstra’s trusted small business suppliers – On Trend Solutions – says shorter payment terms will be a welcome change.
“The change will alleviate some of the ongoing cash flow pressures we experience as a business. It will help us trade with confidence and ensure we remain focused on the things that matter, delivering premium quality services to Telstra.”- Mark Grummisch, On Trend Solutions
Current small business suppliers won’t need to do anything to take advantage of the change. We have done our best to identify all current small business suppliers but, for businesses starting their relationship with Telstra, or for any that we’ve missed in our process, an updated online portal will allow them to indicate whether they are a small business or not.
We’ll continue to talk to our small business suppliers about how we can help them thrive.