A recent report commissioned by mobile payment provider Mint Wireless has revealed the frustration currently being felt by small to medium businesses (SMEs) across the country in terms of slow payments, amid a deteriorating economy.
The study, which examined the financial management of 1800 Australian SMEs has revealed that almost one in five small businesses have lost their temper with a customer over slow payment of invoices, the worst coming from NSW and Victoria with 22 percent of businesses expressing their frustration at the situation.
Mint Wireless CEO, Alex Teoh believes that the level of exacerbation felt by SMEs will only increase as the economy slows.
“For family-run small businesses, slow payment can not only mean a lack of money to meet business expenses, but often a shortfall in money to put food on the table at home. Unfortunately I can only see this level of volatility growing as the economy slows.”
According to Dun and Bradstreet’s latest trade payment analysis, NSW and VIC are the slowest paying states on average, with payments terms four weeks above normal levels at 56.5 days.
Teoh has urged small businesses to re-evaluate their cash flow situation and develop strategies to remain on-top of payments due to them.
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