Positive experiences all round in Melbourne Market Credit Service

Running a business in such uncertain times can pose many challenges, and it's good to know a professional service backs you. The Melbourne

Market Credit Service (MMCS) has been assisting buyers and sellers of fresh produce for over 25 years. Their aim to provide the highest standards of excellence and services is reflected through feedback from members, especially during this challenging time we are currently in.

Tenfarms has been a member of the MMCS since they were established. So far, their experience has only been positive as they believe the Credit Service holds many advantages and endorses the process and structure that the MMCS has put in place. Director at Tenfarms, David Holman, said "the day to day benefit of the MMCS is the streamlining of weekly collections. The team internally have to reconcile any variances by the deadline or risk either no payment being received, or appearing on the warning bulletin - that creates urgency and a deadline for both the buyer and the seller to resolve any anomalies whilst they are fresh and current. The optional bad debt fund that the MMCS offers is also a major advantage for wholesalers here in Victoria that is just not available elsewhere."

Tenfarms learned the hard way when they traded with a buyer outside of the Credit Service and ended up with bad debt, which they will likely recover nothing from. If they referred to the MMCS buyers list, they would have found out that the buyer was a member of the Credit Service and would have been paid in full many months ago. Holman says, "This has been a good lesson, and a review of our debtor's list found a few similar cases that we have now moved to trade through the MMCS." Coronavirus poses a threat to any stable or unstable business. Companies need to be sure that regular cashflow is guaranteed during this time. "Coronavirus will present new challenges for wholesalers and their customers, and I know the MMCS has already responded. Whilst we deal with the new set of challenges facing our market, it is good to know that what has been agreed and sold up until now will be paid for, and that certainly will not be the case for those who do not have such a facility at their disposal," says Holman. Efficiency is vital for any trading business, and efficient support services are an essential asset to have. The MMCS offers channels and processes to ensure each company can achieve steady cash flow, which is critical for business survival. A simple but effective process is in place to assist MMCS members every day.

Vincent Brancatisano, from Prestige Produce, says, "the MMCS offers an efficient and orderly process to collect debtor payments with mutual benefits for my business and my customers also. We have traded with the MMCS since its inception and its service has been a contributing factor to the growth of our business over the years. The payment we receive every Thursday adds strength and confidence to our business without a doubt." Members included in the Bad Debt Fund also carry an extra benefit to their business, especially in uncertain times. "Any business owner that operates in the wholesale sector and understands the intricacies of margin, percentages, and turnover knows how detrimental bad debts can be to your bottom line. When you receive full payment for the bad debt at any time, its a win, win, win!" says Brancatisano. Prestige Produce has had an added strength to its business as members of the MMCS, especially during this crisis. They know exactly what cash flow position they are in, which helps when facing new challenges that arise because of this virus.

There is no better time than now to become a user of the Melbourne Market Credit Service. With such uncertain times ahead, you can ensure the MMCS will look after your business and will strive to manage the fresh produce daily trade. If you are a current User and would like more information on how to join the Bad Debt Fund, or to become a new User of the Melbourne Market Credit Service, please contact Carolyn at carolyn@freshstate.com.au or ring the Fresh State Office on 03 9408 6627.