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
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
