Feb 13, 2017
Australia is lagging the rest of the world in terms of late payments described as the “silent killer of modern business” by the Australian government’s Small Business Ombudsman, Kate Carnell late last year. (Australian Financial Review Article)
An international study of 30,000 invoices from 80 countries undertaken by UK-based “Market Invoice” found that Australian businesses were being paid 26.4 days later than the traditional payment period, far later than the next latest country, Mexico with 18.6 days or South Africa with 16.5 days late.
Based on the traditional 30-day payment terms, this means that Australian small businesses are being paid on an average of 56.4 days.
Ms Carnell said that “In Australia more and more small businesses are falling victim to the unscrupulous payment practices of some big businesses – and even government departments – that are quite frankly a drag on productivity”.