Payment Times Reporting Scheme Exposes Depth of Late Payments to SMEs – ASBFEO
(30 November 2021 – Australia) The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has welcomed the launch of the Payment Times Reports Register which seeks to provide transparency around harmful large corporate payment times.
The new online Payment Times Reports Register publishes information about the payment policies of enterprises with turnover of greater than A$100 million, with this segment classified by East & Partners as “Upper Commercial”.
The register reveals that over 30 percent of invoices are being paid late by Upper Commercial enterprises for what has already been earned by small businesses. Mr Billson commented that the new register holds a magnifying glass to large corporates, forcing them to be more transparent about small business supplier payment times.
“We welcome the Payment Times Reports Register, which reveals the payment policies of more than 6,000 businesses. It’s an important first step in addressing late payments, which continues to be a huge issue for small businesses” Mr Billson stated.
“According to the register, average payment terms are sitting at 37 days – when 30 days is the maximum time any small business should be waiting for their invoice to be paid and some leading larger businesses are committing to pay small business suppliers within a week. The manufacturing industry has the most work to do in terms of lifting its average standard payment terms of 50 days, while media and telecoms industry is among the best performers, pledging to pay their suppliers within 25 days on average.”
“Given much of the Australian small business community has been rocked by the COVID-19 pandemic, prompt payment times are critical. Big business has a role to play in the nation’s recovery and that starts with paying their small business suppliers on time. Adopting e-invoicing is a great way to ensure suppliers are paid promptly. Good business pays. Ultimately, cash flow is king for small and family businesses and if they are paid on time, the whole economy benefits.”
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