World's Worst Title for SMEs
Issue 001
A very unwanted title has been awarded to Australian small/medium enterprise operators with the announcement that Australian small businesses have the “largest debtors' days outstanding in the world". (Download Australian Financial Review Article)
The survey was conducted by UK-based “Market Invoice” which found that Australian businesses were being paid 26.4 days later than the traditional payment period, far later than the next latest country, Mexico with 18.6 days or South Africa with 16.5 days late.
Based on the traditional 30-day payment terms this means that Australian small businesses are being paid on an average of 56.4 days which the Australian Government Small Business Ombudsman, Kate Carnell described as the “silent killer of modern business”.
Ms Carnell said that “in Australia more and more small businesses are falling victim to the unscrupulous payment practices of some big businesses – and even government departments – that are quite frankly a drag on productivity”.
