The Small Business and Family Enterprise Ombudsman, Kate Carnell, released a position paper setting out the draft findings and recommendations of the review today.
“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, who 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,” Mr Crouch said.