Commissioner calls for better payment times in WA
Dun & Bradstreet report shows WA businesses are still leaving payments to small business suppliers last.
According to the Dun & Bradstreet 2nd Quarter Analysis 2017, average late payment times for an Australian business is 14.6 days.
On average, 63.8 per cent of Australian businesses pay on time, but 9.3 per cent still pay more than 60 days after the agreed terms.
Of the more substantial ASX-listed companies only 12 per cent pay on time, compared to 34 per cent of non-ASX listed companies.
Small Business Commissioner, David Eaton, says this is a worrying trend as larger businesses should not be treating their small business suppliers as unofficial money-lenders.
“Unfortunately, this report shows Western Australian businesses remain above the national average for late payments, with just two out of 13 business sectors reporting payment times below the Australian average.
“The trend also indicates that WA businesses are more likely to pay their suppliers last, after covering other operating costs such as phone and utilities,” Mr Eaton said.
“For small and medium sized businesses, cash flow is king, so if larger customers drag their feet when payments are due, it can have a devastating effect on the viability of the business.”
For full details, read the Dun & Bradstreet report.