none

Small business ‘hurt by late payers’

31-08-2010
by 
in 
Small business ‘hurt by late payers’

Many SMEs are suffering at the hand of big companies who are reluctant to pay invoices, says a leading finance specialist.

Bibby Financial Services, the world’s largest non-bank debtor finance specialist for small to medium sized businesses (SMEs), says for many SMEs cash flow is the key to survival.

New industry data reveals 60 per cent of invoices are being paid by Australian businesses beyond the standard 30-day payment period.

The high rate of late payments, as revealed by Dun & Bradstreet’s latest Trade Payments Analysis, has seen businesses pay their bills in an average of 53 days during the third quarter of 2013, more than three weeks beyond standard terms.

The sobering data reinforces the struggle many SMEs are facing to keep afloat, says Bibby.

Separate data issued recently by the Australian Securities & Investments Commission (ASIC) found that the number of Australian companies entering external administration jumped to 1005 in July 2013, the highest level in 16 months, before falling slightly to 986 in August.  

Mark Cleaver, Managing Director, Australia and New Zealand, said: “While business confidence is slowing improving, these statistics give a sobering picture. With some businesses going under due to the difficult economic times, even more are battling to get their invoices paid given the slowdown Australia is currently experiencing. While lower interest rates are helping to cushion the downturn, a battle is being waged by the nation’s SMEs to get paid.”

According to Dun & Bradstreet, large companies were the slowest to pay their bills during the third quarter, with those employing more than 500 staff taking an average of 56 days, three days more than the national average. “Many big business are not paying their bills promptly, which is hurting the economy overall and keeping cash out of SMEs’ hands,” Mr Cleaver said.

“My advice for any SME is to deal with late payers as soon as you become aware that there is a problem, even if an invoice is just a few days overdue. Early action now can overcome difficulties later and you’re more likely to get paid if you chase an invoice rather than simply hope for the best,” he said.

Related news & editorials

  1. 06.10.2021
    06.10.2021
    by      In
    A new global-leading medicine manufacturing facility is soon to be designed that will produce vital nuclear medicines and support 1000 highly-skilled jobs across the country.
    Replacing an existing facility in the southern Sydney suburb of Lucas Heights the site is the base for the Australian... Read More
  2. 02.08.2021
    02.08.2021
    by      In
    Done well, hydraulic servicing can save money and enhance safety.  It is the key to maximising uptime and reliability as mobile hydraulic machinery gets more sophisticated, and depends even more on fully functional and safe hydraulic hoses and fittings. Without them, machinery just stops working –... Read More
  3. piggy bank
    05.07.2021
    05.07.2021
    by      In , In
    Employers should be aware of a number of important changes to payroll and other obligations with the start of the new financial year,” says Innes Willox, Chief Executive of the national employer association Ai Group.
    “The recent Fair Work Commission Annual Wage Review decision increased national... Read More
  4. Yawei laser cutter
    16.06.2021
    16.06.2021
    by      In , In , In
    A commitment to providing outstanding customer service, staying abreast of local trends, and ongoing diversification led to Jmar Engineering in Shepparton, Victoria, celebrating it 25th anniversary recently.
    Jmar, founded by Mark and Janice Hooper, specialises in component manufacturing, repairs... Read More
Products
Suppliers