Companies that inflict long payment terms on their small business suppliers are now facing the possibility of public naming and shaming under a review of payment times outlined this week by the Small Business Ombudsman, Kate Carnell.
The review will include a survey of small businesses as well as request information on payment terms and conditions of 200 of Australia’s largest corporates. Ms Carnell said the report will publicly ‘out’ companies with excessively long payment terms.
As a business, we regularly see the undue pressure and cash flow stress that late payments cause our clients. We welcome this review – for a country that was last year declared ‘worst in the world’ with invoices paid on average 26.4 days late, it’s well overdue.