We value our suppliers as important partners to our business, and recognise the particular needs of small business. For this reason, all our small suppliers will be placed onto 30 day payment terms.
What is a “small supplier”?
Small suppliers are those which:
- Invoice less than $300,000 with us each calendar year, and
- Have less than 20 employees, or have a turnover of less than $10m.
What does 30 day payment terms mean in practice?
We make payments once per week. Suppliers on 30 day payment terms should receive payment in the first pay run 30 days after submitting a correct invoice.
As it’s a challenging time for small business, we’re changing how we pay you. Starting immediately, we will pay you within one week of your invoice being free for payment.
How do I make sure I am paid promptly?
- Only invoice after you have provided the goods or services, or the milestones per the agreed payment plan are met.
- Make sure the invoice matches the purchase order.
- Supply a complete invoice with your Nestlé purchase order number, your banking details and tax registration number.
Incomplete invoices may cause your invoice to be blocked and a delay to your payment.
What should I do if my details change?
Please let us know as soon as possible if details change, as it is the supplier’s responsibility to ensure their details are correct. Should the details on your invoice not match the details we hold, your payment may be delayed while the discrepancy is resolved.
I am a small supplier, but am on longer payment terms. How can I get shorter payment terms?
As we do not have information on our suppliers’ turnover or number of employees, there may be times when we inadvertently omit to put a supplier who qualifies onto the small supplier payment terms.
If you believe you are a small supplier and should be on 30 day payment terms, please reach out to your primary Nestlé contact to verify your status. Once your status as a small supplier is verified, we will amend your payment terms accordingly. If you are a new supplier and you have been verified as a small supplier, you will be placed onto 30 day payment terms.
My status as a small supplier has changed. What should I do?
We review our list of small suppliers each year and amend payment terms accordingly. If you believe your payment terms have been incorrectly amended, please get in contact with your primary Nestlé contact who will review your payment terms.
Do you offer access to supplier finance?
We offer our suppliers access to supplier finance at an attractive rate, however, this is not suited to suppliers on 30 day payment terms. Nestlé does not make a margin on this finance.
If you would like more information on supplier finance, including associated costs, please reach out to your primary Nestlé contact. For more information, please check our Vendor Information Pack.