BRADFORD-based supermarket Morrisons is to extend immediate payments for small suppliers for a further three months.

Farmers, local foodmakers and small businesses will continue to be paid early by the chain in an effort to help them through the ongoing coronavirus pandemic.

In March, Morrisons decided that it would make faster payments until the end of May to help small foodmakers and farmers with their cashflow.

The continued closure of the hospitality and food service sector means that many small businesses continue to suffer cashflow problems.

The Federation of Small Businesses says that many of its members are seeing payment terms lengthened by their clients as they deal with the impact of the coronavirus pandemic.

As a result, Morrisons has taken the decision to extend immediate payments until September.

David Potts, chief executive of Morrisons, said: “Small foodmakers and farmers have helped us to play our full part in feeding the nation. They have told us they face continued financial pressure and we want to be there for them during this challenging period.”

Federation of Small Businesses National Chairman Mike Cherry said: “Many small suppliers have seen their payment terms lengthened or cashflow held up as their big clients try to insulate themselves from the impacts of Covid-19. So it’s refreshing to see a large company like Morrisons championing prompt payment during this national emergency by extending its promise to pay small suppliers immediately.

“This is what good business looks like in these unprecedented times, and we need to see more positive action like this as the whole business community looks to get back on its feet.”

The extension of immediate payments by Morrisons will help businesses that provide up to £1m of turnover, including suppliers of local food and farmers that deal direct with Morrisons, such as those providing eggs and livestock.

Morrisons has around 3,000 small suppliers including 1,750 farmers that will benefit.

The policy means that Morrisons will start to process payments immediately with the aim of releasing payment to the banks within 48 hours.

Morrisons has announced a number of measures during the lockdown, including the introduction of food boxes, Priced £30, the box types include essentials, fruit and veg, BBQ food, family meat and vegetarian essentials.

The company is also helping to restock the nation's foodbanks during the coronavirus outbreak by producing extra food from its sites and distributing more food, such as canned goods and pasta, from its stores.

It runs its bakery, egg and fruit and veg packing site for an extra hour every day. to make, prepare and pack the extra food.