Slow payments by some clients are having a devastating financial impact on many owner-drivers and small fleet companies.
That has been expressed to Spy by a lot of drivers in the past six months as cost of living expenses across the board have skyrocketed.
Affected operators still have to pay their fuel and other costs on time or face being denied access to them.
Veteran owner-operator Col Wallace was one of the drivers I interviewed at random recently and he was critical of slow payers.
“There are many clients who are slow payers and that has been on the rise in the last six months. Some haven’t paid for three or four months,” Col said.
Other drivers have told Spy they often wait three to six months after delivering freight or equipment.
A serious incident I heard of was from an owner-operator who was owed $13,000 by a client who he had considered a friend.
This client didn’t answer the phone as the debt was being chased and when the driver finally tracked him down, it didn’t have a positive ending.
“I was told he had no money and was going bankrupt,” the driver said.
Drivers also say it is almost a mission impossible to get clients to agree to a rate increase after fuel costs rise.
Often clients will shop around and accept another operator at a lower rate.
On the positive side there are many clients who do pay on time, as one NSW driver divulged.
“I have regular clients that I have carried for over many years and they always pay within seven days,” he said.
Now this lad is certainly in the millionaire category but you wouldn’t know it by looking at him or his old truck.
“I don’t drive around in a shiny big new truck and deliver to most parts of Australia but I do very well but really don’t it want common knowledge. People get jealous,” he said.
He can afford to stop at roadhouses and purchase even the most expensive meals.
He reckons that if people think you are well off some will want to borrow money.
“Looks can be deceiving,” he said.