Small businesses are being forced to the brink of collapse because their larger and more powerful customers in the B2B sector take too long to pay their bills.
Some large companies take up to 90 days to pay.
It’s outrageous. It puts enormous pressure on small business operators struggling to meet their own overheads and retain staff.
Often there is no reason for the longer payment terms other than the big companies know they can get away with it. Small firms won’t complain for fear of losing the business.
Credit Agency, Dun & Bradstreet, says Australian businesses are taking almost a full month longer than average to pay invoices. In the June quarter, national payment terms averaged 53.4 days.
It is very hard for small operators in the business-to-business space at the moment. Their cash flow is being choked and the banks won’t lend them any money.
Singleinvoicefinance.com has a team of private investors to support companies caught in this predicament.
The service is proving increasingly popular.
Our national network has experienced a record boom in finance applications in the past 3 months and this is a consequence of the longer payment terms and tighter lending conditions.
Rather than lending money to businesses, singleinvoicefinance.com buys unpaid invoices.
This allows a business to raise funds without going into debt.
It is a quick and straightforward way for cash-strapped business operators to obtain working capital. They can sell us one or more invoices for immediate cash. When the customer pays the bill we get
our money back.
If we, and others like us, weren’t around many small firms would collapse and people would be out of work.
Australian Securities and Investments Commission data for the September quarter shows the number of Australian companies entering administration is the highest on record with administrators appointed to 2,961 companies.