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Earlytrade clients are the case studies of choice in Ombudsman’s final report into supply chain finance
Australian fintech Earlytrade and its clients were featured in more positive case studies than any other SCF provider in the final review into the SCF industry by the Small Business Ombudsman.
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Sydney, April 2020
Australian fintech Earlytrade and its clients were featured in more positive case studies than any other SCF provider in the final review into the SCF industry by the Small Business Ombudsman.
The ombudsman stated that a truly collaborative SCF program does not discriminate against particular suppliers. Its use must be at the control of the supplier and they should have the freedom not to use it. One of Earlytrade’s clients Lion is quoted saying SCF is beneficial “if it is offered in addition to – rather than as an alternative to – fair payment terms.”
“We agree with the Ombudsman, 30-day payment terms should be legally binding and we believe this will help all business during a COVID-19 downturn.” Earlytrade CEO and co-founder Guy Saxelby said. “There isn't any excuse for this. With the right tools, any major company can pay their suppliers within 30 days.” Since launching Earlytrade in 2017, Lion has seen more than a 125% increase in suppliers paid on terms of 30 days and shorter (from 42.06% to 94.63%).
This payment term law should be limited to small business, as it's where the funds are needed most. Legally, there are many definitions for this that may need to be clarified ahead of a law being put in place. As a solution, we offer large companies a verification service called Earlytrade Verify to automatically identify smaller businesses in their supply chain, as it can often be incredibly difficult and costly for companies with thousands of suppliers to determine who fits what criteria.