Running a small business is hard work and payment delays make it even harder.
Payment times in Australia are among the worst in the world, with invoices paid on average 26.4 days late. Their most recent research, involving 1600 businesses, identified the biggest cause of dispute remains payments (44 per cent); either the full amount not being paid (26 per cent) or not being paid on time (18 per cent).
Partial and late payments, seeking discounts to pay in 30 days, and offering loans to cover extended terms all force businesses to find ways to finance the shortfall in their working capital – a significant financial and management burden for small businesses.
The Australian Small Business and Family Enterprise Ombudsman has announced an urgent review of payment times, to measure how late or extended payment practices affect the cashflow of small businesses and family enterprises.
The Ombudsman wants to hear your experience with payment times, including:
- What are the payment times in your contract?
- Do you have to provide a discount if you want to be paid in 30 days or less?
- Are you paid later than the contract states?
The results of the survey will be used to provide advice on how late and extended payment practices might be improved to better protect the cashflow of small businesses
It takes just a few minutes to participate in the survey, and the responses will remain completely confidential. You can get involved in the survey here.
