Ask anyone who runs a small business and they’ll tell you cashflow is a major issue that constantly has to be juggled.
Smaller road transport businesses are not immune to the situation of having their invoices out to be paid, but also sitting on a stack of bills and invoices that they’re expected to pay, often in as little as just seven days.
NatRoad say a lot of stress would be taken off these types of operations with the introduction of minimum 30-day payment terms.
The call comes as the Australian Small Business and Family Enterprise Ombudsman reviews payment times for small/medium enterprises (SMEs).
Warren Clark, CEO of NatRoad, says hopefully the review will help transporters.
“We believe that the Ombudsman’s inquiry will show that payment times in the road transport industry are too long.
“The introduction of an industry code that includes payment terms would significantly improve the viability of small trucking businesses.
“Our members have told us that lengthy payment terms increase financial and administration costs, reduce the potential for growth and investment, and ultimately add to business uncertainty and failure.
“Ensuring business owners have good cash-flow will help grow and strengthen the whole economy.”
How’s your cashflow? Would 30-day terms be a positive for your business? Let us know your thoughts in the comments section.
- Related: NatRoad wants Stamp Duty rethink
- Related: Lawyers warn transporters may not be meeting new CoR regulations
- Related: Can’t find truck drivers? Why not train people for the job?
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