The main cause of failu in the industry today is inadequate cashflow'
Page 69
If you've noticed an error in this article please click here to report it so we can fix it.
gTh ere are two little words (among others) guaranteed to evoke a heated
response from most self-respecting owner-drivers — getting paid. The responses may vary to a certain degree but the overriding factor is one of frustration and anger at large companies which deliberately delay payment and adopt a "couldn't care less attitude" when it comes down to actually settling invoices.
My own firm has had the experience of supplying haulage services on a long-term basis where obtaining payment at the end of each month for work done two months previously has been a continuous struggle.
If a company sticks to an agreement to pay invoices at 60 days it enables the operator to plan ahead in respect of monthly outgoings such as fuel bills and other regular direct debits at the bank.
But in reality you are forced to operate on extended credit on a month-to-month basis through no fault of your own because of companies holding on to your money for as long as they possibly can.
What I find most exasperating is the downright deceit of some accounts offices and the feeling of frustration when payment is delayed because somebody has suddenly gone on holiday or the person who signs the cheques is struck down with some mysterious illness and is off sick. How many times have we heard that one? Is it any wonder that drivers get a reputation for being stroppy?
I have encountered the following explanations two weeks after payment date: the cheque's in :he post: the person who signs the cheques is on holiday: the cheque has been posted that very day. On one occasion I sent a colleague by car to physically collect a cheque that had been "sent" a week before. Why can't large companies who use subcontractors tell the truth? It should not be necessary to threaten legal action just to get paid for servias rendered.
With just two tractor units it is not good practice to chop and change around, particularly if a client is giving you work and keeping you busy on a regular basis. But there comes -a point when enough is enough and you have to look elsewhere for work to stay in business.
What we need is legislation that would protect small enterprises like mine and enable it to grow from a one-man band into an orchestra.
Recently a politician claimed that "it is the small businesses that will pull this out of recession". In an effort to scoi the opposition seems to take great satisfaction in telling the media hovi small businesses have gone to the w no one seems willing or able to do ai about the scandalous situation whet owner-driver supplies, in good faith services, vehicle and fuel, only to fa( and time-delaying tactics when the comes to pay.
For anybody to buy a truck and g all the necessary administration am requirements, then operate it succes make a living demands a lot of comi from everyone involved. There is plc work around — the main cause of fi the transport industry today is mad cashflow. I believe companies who r sub-contract work to owner-drivers obliged to ensure prompt payment. achieve a dramatic increase in the si and reputation of the transport inch will result in a more professional ap operators with better equipment. 7