Around 200 small and medium-sized businesses across North West NSW will benefit from Whitehaven Coal’s decision to adjust its payment terms so that these local suppliers are paid within 21 days from the date an invoice is received.
Today’s announcement by Whitehaven means bills will be paid even faster, helping regionally-based suppliers to improve their management of cash flow and capital.
“Whitehaven has a proud heritage as a locally-based and locally-focused miner and we know many smaller businesses in regional areas are reliant on cash flows generated by a smaller number of larger customers,” said Whitehaven’s CEO and Managing Director Paul Flynn.
“Considering the way in which so many regional businesses have helped contribute to our own success and growth as a company over the years, we are pleased to be able to make this change and build on our record of close partnership with local suppliers.”
This improvement to payment terms builds on Whitehaven’s $1.5 billion contribution to the North West NSW economy since 2013.
One of Whitehaven’s key local business partners is GBP Cranes, which has been operating out of Gunnedah for more than 40 years. GBP Cranes Director Daniel Hawkins said quicker payments would enhance his company’s capacity to invest in other initiatives to grow the business.
“A key aim of ours is to employ locals and keep investing in our local economy and community. We have been able to grow our workforce to 20 employees in part because of our relationships with large local businesses like Whitehaven,” said Mr Hawkins.
“It’s great to see them announcing further improvements to working with businesses like ours – it really is a win-win outcome.”
This change builds upon Whitehaven’s industry-leading approach, with more than 51 per cent of suppliers already being paid within 30 days, and the balance by next month’s end, as the company informed the Standing Committee on Industry, Innovation, Science and Resources Inquiry into how the mining sector support business in regional economies in 2018.