Review of Supply Chain Financing
On 30 October 2019, the Australian Small Business and Family Enterprise Ombudsman announced a review into the impact of supply chain financing on the small business and family enterprise sector.
The review will examine the ways in which small and family businesses use supply chain finance as a means to better manage their cash flow and fund growth.
It will also look at supply chain finance offerings being used by larger businesses to offset extended payment times.
As part of the Ombudsman’s review into payment times, consultations with large businesses revealed that supply chain finance arrangements were being offered as an option for earlier payment to suppliers. Since then, there’s been a significant number of small businesses contacting the Ombudsman’s office in relation to supply chain financing issues. There’s also been greater media interest in supply chain financing.
The review will look at specific industry sectors, along with the broader impacts on small businesses using this finance and related reporting practices by big business.
A final report will be released by the end of March 2020.
On 7 February 2020, Ombudsman Kate Carnell released a position paper outlining the key preliminary findings of the Supply Chain Financing Review.
The position paper details ASBFEO’s findings and draft recommendations to be finalised before a full report is handed down at the end of March.
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