A website for small businesses in Australia reports that middle sized businesses currently owe about 8 billion dollars, with a quarter of that past due. A consultant is studying how to address this problem. While most business owners say they want to pay their bills, they admit that the revenue stream often prevents them from doing so. Labor takes up about 39 per cent of expenses, and supplies about 23 per cent. Most businesses are predicting they will grow in 2017.
- Australia’s midsize businesses have serious debts owed to their suppliers totaling in $8 Billion.
- While some suppliers have found success by structuring pre-payment arrangements with mid size businesses, not all company’s oblige.
- It is the mid size businesses’s poor cashflow management that is the main cause for the resulting outstanding payments due to suppliers.
“Mid-sized Australian businesses owe $8 billion in outstanding payments to suppliers, with more than $2 billion currently overdue, according to new research released by American Express.”