ATA expresses concern over apparent shortage of credit for trucking companies
The Australian Trucking Association (ATA) has expressed its concern over the apparent shortage of credit for trucking companies and says it will raise the issue with the Federal Government.
ATA Chairman Trevor Martyn says major lenders have cut back on issuing finance to transport companies.
“A number of major lenders have effectively stopped lending to transport companies, or are charging higher interest rates than the market average,” Martyn says.
Martyn says the sudden slow down of lending means trucking companies are finding it hard to buy replacement equipment, which has affected their operations.
The National Bank of Australia (NAB) denies its policy on lending to transport companies has changed and says its policy on lending is the same for all types of business.
“We haven’t changed our approach to lending to the transport industry and treat all opportunities on a case by case basis,” a spokesperson for the bank says.
“In response to the tougher market conditions the underlying metrics of each transaction are carefully assessed in accordance with our prevailing view of each market sector.”
But Martyn says the problem does exist and needs to be addressed.
He has written to Minister for Small Business Craig Emerson to express his concerns, while the ATA has established a survey to determine the extent of credit shortages.
The information will be collected and handed to the Government
“We’ve had a useful discussion with [Emerson’s] office already and will be seeking a formal meeting once we have the results from the credit availability survey that we have launched,” Martyn says.
To take part in the ATA’s credit availability survey Click here