Late payments causing more than a headache for SMEs
Late payments to small business could soon be a thing of the past, according to accounting software provider MYOB.
“MYOB is committing to paying our suppliers within 30 days. Ensuring businesses are paid on time is one of the best things other businesses can do to keep the economy moving,” says MYOB CEO Tim Reed. “We’re also encouraging other businesses to commit to paying invoices as quickly as possible. The whole economy will benefit if we can introduce a culture of prompt payments into our business community.”
The initiative comes in response to the proposal from the Business Council of Australia’s call for a voluntary industry code to ensure small businesses are payed within 30 days of an invoice being issued. We know there is goodwill out in the Australian business community about this issue. I want to encourage other business leaders to end the practice of late payments and commit to paying small businesses in a timely fashion,” says Reed.
“We’re proud to do our part to support small businesses across Australia. MYOB has worked alongside these businesses for more than 25 years, we know the importance of ensuring they get paid on time,” he adds.
MYOB’s most recent Business Monitor survey found more than three-quarters (77 per cent) of Australian SMEs had been impacted by customers not paying on time.
The survey also found that late payments were affecting the personal finances of 35 per cent of business owners, with 32 per cent saying they had hit owners’ ability to cover expenses such as rent and power, while 52 per cent saying late payments affected their stress and anxiety levels.
“There are more than 2.1 million small businesses in Australia, making them an extremely important part of the economy,” says Reed. “Ensuring each of them is paid promptly would speed up how quickly cash flowed around our economy and benefit everyone. Each of us has an important part to play in helping other businesses to succeed.”