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RELEASE Australia’s transport industry is in urgent need of a financial management upgrade, according to a funding expert. The transport industry, which is notoriously competitive with a disturbing number of casualties and fighting rising fuel costs, is also finding on-time client payments as difficult to maintain as realistic profit margins. ‘We’ve been operating in this industry for some time now but In just the past year we’ve found client payment terms have blown out nearly an extra 10 percent from what was previously unacceptable,’ says Oxford Funding’s Rob Lamers. ‘This is among the worst of all the many industries with which we work and is a sign of how tough transport undeniably is. It is clearly a result of the over-supply of carriers chasing a finite amount of work where clients are not only hanging out for the best price but also stretching payment terms to the maximum.’ Oxford Funding, which is part of the Bendigo Bank, is a national debtor financing company whose financial products include an invoice factoring service to many industries, including transport. An internal review of its operations to monitor how various sectors are performing revealed that transport is not only a very hard industry in which to run a business but the clients are increasingly unwilling to pay on time. ‘With our expertise at collecting outstanding monies, this last year¹s blow-out means managing the debtors ledger is getting extremely difficult. It certainly is one of the worst situations on our books. ‘Clearly, the transport industry needs all the financial help it can get.’ Lamers said. caption: Oxford Funding’s National Sales & Marketing Manager, Rob Lamers. ENDS Contact Oxford
Funding on 1800 850 509 or www.oxfordfunding.com.au |
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