Australian trucking industry backs calls for fair payment terms

2 MinutesBy NZ Trucking magazineFebruary 10, 2020

The Australian Trucking Association has backed the key draft recommendations of the small business ombudsman‘s Supply Chain Finance Review, which calls for fair payment terms and controls on supply chain financing. 

The Small Business and Family Enterprise Ombudsman, Kate Carnell, has released a position paper setting out the draft findings and recommendations of the review. 

“We welcome Kate Carnell‘s finding that too many big businesses are unfairly extending their payment terms and then offering supply chain financing – at a price – to their small business suppliers,” ATA chair Geoff Crouch said. 

“Reverse factoring does not treat hardworking trucking businesses fairly. It‘s even more unfair when supply chain finance providers use the data they gather to increase their fees when small businesses need cashflow the most, and are therefore the most vulnerable. 

“This has to stop. Instead, we should ensure that small businesses are paid in full and in a timely manner,” he said.  

The ATA has long advocated for fairer payment terms for trucking businesses, which are often vulnerable to adverse changes in their payment terms and often have little capacity to negotiate them with large customers. 

“We‘re calling on Government to mandate fair payment terms for small businesses. Small and family businesses incur more of their costs like wages, maintenance and insurance before they can even bill customers,” Crouch said.