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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 can 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 April 2020.

Small businesses and family enterprises who have had experience with supply chain financing can contribute to the Ombudsman’s review via inquiries@asbfeo.gov.au

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