Last April, the group had already paid out approximately US $4.5 million in advance, plus an additional US $4.5 million during May, in order to ensure better liquidity for a total of 721 suppliers.
Komatsu Cummins Chile has decided to extend their advance payment scheme for their SME suppliers, a decision that entails paying out more than US $9 million up until May 2020. In so doing, Komatsu intends to assist these companies within the context of the first global pandemic due to Covid-19.
The scheme was put into action back in April, when Komatsu Cummins decided on two different occasions to accelerate payment of invoices totaling up to approximately US $4.5 million. At the time, the goal was to ensure liquidity of small and medium enterprises that issued their invoices within a 30-day deadline.
Taking into consideration the enduring pandemic, Komatsu Cummins Chile has decided to double down on the scheme, paying out an additional US $4.5 million during May. In so doing, up until May, payment of 4465 documents was accelerated, thus benefiting a total of 721 SME suppliers.
Rodrigo Izurieta, manager of financial resources for Komatsu Cummins, highlighted the purpose of the collaboration that small and medium entrepreneurs require given the current economic scenario of the country.
“Given the complex circumstances that we are going through due to the Covid-19 pandemic, SMEs have run into many challenges in their endeavor to continue their operations. We are fully aware of the effort made by our suppliers who continue to offer their products and services to us. By the same token, we want to acknowledge these efforts and – in order to contribute to their liquidity – we have decided to extend this scheme, which allows these companies to count on money being readily available so as to expand their operational opportunities”, the executive stated.
Izurieta also pointed out that extending this aid throughout June is under evaluation. “Behind every small and medium-sized supplier, there are people and families. In a bid to provide support for them, we are going to extend this scheme. Thus, we expect to pay in advance another US $4 million of invoices to our suppliers during June. The goal is for all SMEs to be able to guarantee a safety net for those reliant upon them.”
It is worth noting that the advance payment measure came about in late 2019 as a proposal put forward by Komatsu Cummins in order to aid close to 400 SMEs affected by the social outbreak. On that occasion, more than 2 thousand invoices were paid in advance, which entailed paying out more than $2,700 million.