Receiving payment on time is a top tier reason for businesses to do better and reinvest capital in new jobs, among other expansions. The Ombudsman’s office has advised that other countries like the US and the EU have both done studies indicating that faster payment terms to small businesses increase growth. Australia’s government has elected to make it a policy to pay small business faster which helps companies expand. The biggest issue for investment in small business is cash flow. Faster invoice payments will drive faster growth.
- Cash flow is everything for a business struggling to get established, and late payments hurt when you need income.
- A new protocol in Australia sets a twenty day turnaround for payment of invoices due to small businesses.
- When money due is instead on hand, a small business is more able to grow or look for ways to invest in their operations.
“Carnell said overseas experience showed significant benefits from faster payment times.”