11 December 2019
Avoiding the Christmas/New Year cashflow crunch
- Late payment of invoices is a major problem for SMEs in the Australian labour-hire sector, which can even lead to the closure of businesses in extreme cases. At the very least, it creates uneven cashflow, potentially leading to problems paying suppliers and staff, missed opportunities and falling behind in tax payments.
- The issue of late payments becomes worse around Christmas and New Year when many businesses shut down or operate on a skeleton staff. For customers waiting for payment, this can create difficulties for them around paying staff and utility bills, for example.
- Research from illion for the 2019 June quarter revealed that 25 per cent of Australian SMEs (which it defines as businesses with less than 500 employees) experience problems with late payment of invoices.
Read the full article - https://insidesmallbusiness.com.au/featured/avoiding-the-christmas-new-year-cashflow-crunch
by Greg Charlwood (AIF), Monday, 9 December 2019