As Lex Greensill stated earlier this year, Greensill will not allow our supply chain finance (SCF) facilities to be used by Australian clients to extend payment terms to SME suppliers beyond 30 days. We will discontinue the use of our SCF facilities to clients who use our SCF facilities in this way.
Greensill helps suppliers get early access to the money they are owed – something that is more important than ever in the current climate.
In February, we informed all of our Australian clients that we expected compliance with our public statement to not let clients use Greensill’s SCF to push out payment terms to SME suppliers beyond 30 days. We are proud to say that virtually all of Greensill’s clients in Australia are fully compliant with our statement for SCF facilities provided by Greensill.
Greensill has allowed a period for the remaining clients to complete their internal reviews stemming from our request. We have given formal notice to those clients that their SCF facilities will be discontinued unless they ensure that they do not use our SCF facilities to push out payment terms to SME suppliers beyond 30 days.