Small businesses waiting longer to be paid
The squeeze is on, and many businesses are failing to pay their bills on time, according to new research released by debtor finance specialist company, Bibby Financial Services.
The survey - the Bibby Small Business Barometer - conducted on over 200 small businesses in Australia at the end of June, found that 42 per cent felt their customers were resorting to excuses for slow payments, and that as a consequence of receiving late payments, 25 per cent of small businesses were experiencing serious cashflow shortages.
Commenting on the data, Bibby Financial Services managing director Greg Charlwood said late payment was a serious problem for small businesses in Australia, with many struggling to meet liabilities on time and many contending with non-payment.
The survey found that 52 per cent of small businesses that deal with big companies and government clients are frustrated with slow payments, and when considering outlook for payments terms, small businesses remain pessimistic.
Charlwood said 38 per cent of small businesses were expecting the length of time they had to wait to be paid to increase further in the coming quarter - something that would place considerable pressure on cashflow management.
AUTHOR
Mike Taylor
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