A position paper released by Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), calls for a fairer approach to supply chain financing.
The ombudsman’s Supply Chain Finance Review released on Friday (Feb. 7) outlines draft recommendations about supply chain financing that will be completed for the final report in March.
Carnell said the draft findings and recommendations call for fair payment terms and controls. She said numerous bigger companies had abused the tool, and the supplier payment code is unenforceable.
“Supply chain finance is a legitimate and effective tool that can be used to free-up cash flow for small and family businesses,” Carnell said in the position paper.
