November 27, 2018
An emerging trend among large Australian and multinational companies to delay payments to rural and regional businesses is being surveyed by the Federal Government.
Australian Small Business and Enterprise Ombudsman Kate Carnell has called on small businesses and family enterprises in rural and regional Australia to fill in a quick survey about payment times this week.
The survey will close on Friday afternoon, November 30.
“We know some of the worst payment practices are directed towards rural and regional businesses, and we need to understand the length and frequency of these practices,” Ms Carnell said.
“Extending payment times for suppliers effectively uses the businesses in the supply chain as a cheap form of finance.”
Ms Carnell said she believed small business should never have to act as a bank for big business, helping to finance large Australian and multinational companies.
“Our 2017 Payment Times and Practices Inquiry identified a growing trend for these companies to delay and extend payments to their suppliers,” Ms Carnell said.
“Typical payment times of 30 days moving out to 45, 60, 90 or 120 days.
“If your small business or family enterprise has experienced late or extended payments, please go to our website and fill in the survey.
“It will take less than five minutes and will help us gather vital information to present to Minister Michaelia Cash, to help small business owners and family enterprises to stress less about their cash flow.”