Late payers impacting on festive season
The Christmas period can be a real struggle for many businesses especially in the transport industry. This time of the year, see many businesses impacted by late payments from customers. The delay is extended due to number of public holidays as well as people going on leave.
According to illion, independent provider of data and analytics products and services in Australasia, the 2019 June quarter revealed that one third of Australian SMEs (which it defines as businesses with fewer than 500 employees) experience problems with late payment of invoices. The problem becomes worse around Christmas and New Year, when clients and customers often shut down for an extended period after the Christmas rush.
The illion research showed that the transport industry experienced an average late payment time of 9.7 days. That’s almost six weeks that it takes transport companies to be paid, on average.
Greg Charlwood, Managing Director of Australian Invoice Finance, shares how to solve the cash flow challenge for transport business operators in Owner Driver publication. See attached