BHP and other coal mining companies such as Peabody and New Hope Group are supporting local businesses in their supply chain, she said.
"This will make a huge difference to regional economies in Queensland. Extended payment terms slow down cash flow in regional towns and puts the hand break on local businesses expanding and employing new staff," Fentiman said.
"BHP's new approach will unlock this cash flow to almost 700 local business.
"All businesses, big or small, have an obligation to support local communities where they and their employees work."
In September Fentiman wrote to Queensland's large resource companies putting them on notice to start paying their small business contractors within 30 days.
Only 20% have responded with a commitment to work to improve payment terms or highlight their already strong record of paying small business within 30 days.
Disappointingly not all companies are putting in place fairer payment terms, Fentiman said.
Glencore Coal was one of a few resource companies to respond to the Minister's call in September without a commitment to see 30-day payment terms become the norm.
"There is still more to do - we need companies like Glencore…and others to join our campaign and have fair payment terms for small business," she said.
"If BHP can make this change, all companies can."
Australia's Mining Monthly contacted Glencore for comment.
For its part, the Queensland government is committed to making it easier for small business to do business with government.
"My department has responsibility for the Queensland government's Late Payment Policy to ensure payment is made within 30 calendar days," Fentiman said.
"In addition, as part of the Queensland Small Business Procurement Commitment Consultation Paper, the Palaszczuk government has already flagged an intention to improve payment timeframes for government contracts. Outcomes from that consultation will be released in the near future."