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Shell tightens up on credit

19th December 2002
Page 8
Page 8, 19th December 2002 — Shell tightens up on credit
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Which of the following most accurately describes the problem?

• A Scottish haulier claims he almost went out of business when fuel giant Shell slashed his credit limit from £60,000 to zero in just 10 days.

David McGawn, owner of Ayrshire-based McGawn Bros, has been a Shell customer for 30 years and spends about £300,000 a year on diesel.

He was ordered to provide accounts before he could buy any more fuel on credit. He had never been asked for this before. When he explained that he was unable to comply because his accountant had them Shell refused to set him any more diesel.

"The time limit they gave me was impossible, says McGawn. "We had wagons sitting there with no diesel in them. If I had reneged or a cheque had bounced I could see the sense of it—they left me high and dry° Shell credit manager Steve Park says: "We have always adopted a strict credit policy. I wrote him a personal letter arid explained the situation; !think this was reasonable."

Park adds that Shell tried to get in touch with McGawn on two occasions, but he admits that McGawn may not have been asked for accounts before.

The Road Haulage Association has received similar complaints from other members about fuel firms tightening up on credit terms: a spokesman says this problem is worsening, adding that the industry is in a bad enough shape as It is without suppliers making life more difficult.

CREDIT CRACKDOWN!

• Have you had problems with fuel companies cutting your credit limits recently? Lot us know! Fax the details on 020 8652 8971; leave a message (including your name and phone number on 020 8652 3689; or e-mall amma.penny,wrbi.co.uk.

Tags

Organisations: Road Haulage Association
Locations: Ayrshire

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