Lex Greensill CBE is the co-founder and CEO of Greensill.
Lex Greensill CBE is the co-founder and CEO of Greensill.

Greensill leading by example in Ombudsman’s eyes

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed action taken by Greensill to cut ties with clients that have poor payment terms, calling on other supply chain finance providers to follow suit.

“Greensill has issued discontinuance notices to its supply chain finance clients who fail to comply with 30-day payment terms,” Ms Carnell.

“This is strong action taken in response to our Supply Chain Finance Review, showing that Greensill takes prompt payment times to small business seriously.

“There is no reason why other supply chain finance providers can’t do the same.

“As outlined in our Supply Chain Finance Review, we know there are large companies extending their payment terms to 60 or more days from the end of month the invoice is lodged and offering supply chain finance to those that want to be paid earlier and are willing to take a discount on the invoiced amount.”

She said this practice was “unacceptable” and harmful to small businesses, especially in the current difficult trading conditions.

“Now, more than ever before, small businesses need to be paid the full invoiced amount owed, on time. Their survival depends on it,” Ms Carnell said.

“That’s why my office has recommended federal legislation requiring small businesses to be paid in 30 days.

“It is the only way to drive meaningful change in business payment performance across the economy.”

Ms Carnell said Greensill has shown that supply chain finance providers can lead by example by cutting off clients that fail to pay on time.

“This should be the position adopted by all supply chain finance facilitators,” she said.

MORE STORIES



War of words over road funds as Bennett takes swipe

Premium Content War of words over road funds as Bennett takes swipe

TIT FOR TAT: Bailey meanwhile says Bennett has been thrown ‘a hospital pass to...

Why Bundy has been added as a stop on new caravanning route

Premium Content Why Bundy has been added as a stop on new caravanning route

The Sloways initiative was launched just in time for the school holidays.

BREAKING: Man lucky to be alive after Burnett chopper crash

Premium Content BREAKING: Man lucky to be alive after Burnett chopper crash

A Burnett man is lucky to be alive after crashing his mustering helicopter this...