The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has expresssed her displeasure over reports that some big businesses are using COVID-19 as an excuse to delay payments to their small-business suppliers.
Carnell has echoed the sentiments of the Minister for Small and Family Business, Senator the Hon Michaelia Cash, saying that it is vital for large businesses to pay their small-business suppliers on time not only for the benefit of the small business but that of the national economy as well.
“Now is the time for big businesses to do the right thing and be a part of the solution in this very difficult period,” Carnell said. “Cashflow is always king for small businesses and never more so than now, particularly for small businesses struggling with the ripple-effects of coronavirus. That’s why it’s so important for big businesses to step up and pay on time or reduce payment times.”
The ASBFEO noted that the Payment Times Inquiry and the Insolvency Practices Inquiry both show that cashflow is the leading cause of insolvency among small-business suppliers.
“It’s been so encouraging to see some big Australian businesses such as Telstra, BHP, Rio Tinto and more recently Woolworths, commit to faster payment times and there’s no reason why others can’t adopt the same practices,” Carnell said.
Small business experiencing issues with payment times are encouraged to contact the ASBFEO for assistance.
