SME partners of Charoen Pokphand Foods Public Company Limited (CP Foods) praised the Faster Payment project, a net 30 days credit term program, for boosting cashflow to SMEs, helping them survive in the midst of the Covid-19 epidemic situation.

CP Foods’ Faster Payment offers a 30-days credit program, which means that payment is due within 30 days of the date that goods or service is delivered to CP Foods.

For a 10-months long since the project started, the Faster Payment program has supported around six thousand partners, mitigating both direct and indirect impact of COVID-19 outbreak by  nject liquidity into those SMEs during economic slowdowns

Niwat Deengarm, Managing Director of Phurin Green Foods Products, a supplier of GAP-standard garlic to CP Foods, said that reducing the credit terms to within 30 days can help small agricultural partners with not much cash reserve, to maintain their business without having to lay off workers. It also save a career of many garlic farmers during the covid-19 crisis.

Niwat says: "The 30-day credit program is not only able to keep SMEs in the business but it helps 100 households of garlic growers in Chiang Mai to have a stable income amid the crisis. Also, the program encourages farmers to apply for GAP (Good Agricultural Practices: GAP) standards to produce safe and sustainable agricultural products that is in demand by post-COVID market,”

Sekphon Boontechathanawat, Managing Director of Khob Khun 2562, one of CP Foods’ suppliers for food safety testing products, said that SME partners have benefited from the “Faster Payment” scheme. Thanks to the 30-day credit, small companies’ liquidity has improved amid economic uncertainties.

He added that the Faster Payment program is also given an opportunity for entrepreneurs to adapt to the “next normal” trend, such as finding more domestic suppliers to reduce dependence on imported products or new expansion into food safety focused business such as halal foods and frozen foods. 

“I am confident that we will be able to get through this crisis. With a 30-day credit term program, small and medium sized businesses can reduce expenses and interest costs. This is another important factor that helps small businesses to survive and promptly adopt new strategy, using a lesson learned from this outbreak," said Sekphon.

Naruemon Saengmanee, Managing Director of DMP Uniform Co., Ltd. which produces uniforms for CP Foods and other food companies nationwide, said that the unprecedented outbreak has damaged her customers, resulting them to stop purchasing uniform from DMP. However, faster credit terms from CP Foods helps the company to keep business going.

She believes that this surge of infection will be longer than expected, the company, therefore, focuses on increasing production efficiency, while keeping other cost low and expanding more into online marketing channels.

Thidarat Dechayonbuncha, Vice President of CP Foods, said the company is considering further extension of the project to help maintain the business of 6,000 SME partners s through the crisis.  CP Foods is also preparing to develop the potential of SME partners, in terms of production standards, international standard labor management and social responsibility to enable them to compete in global markets in the post-covid era.