Australian businesses are keen to take on growth projects, particularly when it comes to integrating new technology, but concerns around cashflow and late payments continue to dominate.
This month preliminary findings from the Australian Small Business and Family Ombudsman’s (ASBFEO) inquiry into payment times found big business and some government sectors continue to drag their feet on payments owed to SMEs, and more small operators are feeling the pressure.
Around 60% of businesses surveyed by the Ombudsman reported an increase in late payments over the past 12 months, which has had the effect of reducing overall profitability.
Meanwhile, recent data from Xero gives weight to the suggestion that the big end of town is contributing to the payment gap. Xero reviewed SME accounts on its platform and found one in five invoices that were overdue by more than 30 days were payable by ASX200 companies.
More than half the small businesses Xero surveyed had at least one invoice that was more than 30 days overdue.
Small Business Ombudsman Kate Carnell has been focused on measures that will support SMEs in situations where there is a power imbalance, as she highlighted in the recent inquiry into SME lending practices at the big banks.
“Small businesses are critical drivers of competition and diversity so it’s vital Australia has a strong legal framework that allows smaller operators to compete on their merits,” Carnell said yesterday, speaking on the importance of governments to support smaller operators.
Cashflow Concerns Top of Mind as SMEs Look to Invest in Growth
By: Emma Koehn
Australian businesses are keen to take on growth projects, particularly when it comes to integrating new technology, but concerns around cashflow and late payments continue to dominate.
This month preliminary findings from the Australian Small Business and Family Ombudsman’s (ASBFEO) inquiry into payment times found big business and some government sectors continue to drag their feet on payments owed to SMEs, and more small operators are feeling the pressure.
Around 60% of businesses surveyed by the Ombudsman reported an increase in late payments over the past 12 months, which has had the effect of reducing overall profitability.
Meanwhile, recent data from Xero gives weight to the suggestion that the big end of town is contributing to the payment gap. Xero reviewed SME accounts on its platform and found one in five invoices that were overdue by more than 30 days were payable by ASX200 companies.
More than half the small businesses Xero surveyed had at least one invoice that was more than 30 days overdue.
Small Business Ombudsman Kate Carnell has been focused on measures that will support SMEs in situations where there is a power imbalance, as she highlighted in the recent inquiry into SME lending practices at the big banks.
“Small businesses are critical drivers of competition and diversity so it’s vital Australia has a strong legal framework that allows smaller operators to compete on their merits,” Carnell said yesterday, speaking on the importance of governments to support smaller operators.
Australian businesses are keen to take on growth projects, particularly when it comes to integrating new technology, but concerns around cashflow and late payments continue to dominate.
This month preliminary findings from the Australian Small Business and Family Ombudsman’s (ASBFEO) inquiry into payment times found big business and some government sectors continue to drag their feet on payments owed to SMEs, and more small operators are feeling the pressure.
Around 60% of businesses surveyed by the Ombudsman reported an increase in late payments over the past 12 months, which has had the effect of reducing overall profitability.
Meanwhile, recent data from Xero gives weight to the suggestion that the big end of town is contributing to the payment gap. Xero reviewed SME accounts on its platform and found one in five invoices that were overdue by more than 30 days were payable by ASX200 companies.
More than half the small businesses Xero surveyed had at least one invoice that was more than 30 days overdue.
Small Business Ombudsman Kate Carnell has been focused on measures that will support SMEs in situations where there is a power imbalance, as she highlighted in the recent inquiry into SME lending practices at the big banks.
“Small businesses are critical drivers of competition and diversity so it’s vital Australia has a strong legal framework that allows smaller operators to compete on their merits,” Carnell said yesterday, speaking on the importance of governments to support smaller operators.