By Donna Jones
More than half of the nation’s big businesses are missing their own deadlines for paying their small business suppliers, according to the latest data from the Payment Times Reporting Regulator.
While this may be the case in other regions and metropolitan areas, the impact on Gympie businesses it seems has been minimal.
President of the Gympie Chamber of Commerce, Petra Van Beek contacted members on the issue of big businesses being late on their payments but only received a single reply.
“It would seem that it is not a big issue for Gympie businesses,“ Ms Van Beek said.
The single respondent answered the question “Are late payments from Big Business adversely affecting you? If so, to what extent and by whom?“ with the following response.
“Yes, State Government is now paying much later than they used to and we have to hound them to get payment. This was never the case before the last four months.“
Although a disappointing state of affairs for this business, it is gratifying to see that the results are limited locally when according to the Ombudsman, “Payment disputes represent 40 per cent of requests for assistance received by our office. Prior to Covid-19, this proportion was around 25 per cent.“
While there has been a marginal improvement in stated payment ambitions, actual payment performance has slipped to the point where even the mediocre 30-day payment goal has not been met, says the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson.
“This is an incredibly disappointing result,” Mr Billson said.
“Cash flow is king for small and family businesses and if they are paid on time, the benefits spread through the entire economy,” Mr Billson said. “We must not forget that two out of every five people with a private sector job work in a small business.”