Small business platform Xero has revealed the impact of late payments on Australian small businesses in a new report: Paying the Price: the economic impact of big businesses paying Australian small businesses late.
The report’s authors AlphaBeta Advisors, analysed more than 10 million invoices issued from more than 150,000 SMBs and put the estimated cost of late payments at $115 billion a year. With the research finding that half of all trade credit invoices are paid late and that solving the problem would see small and medium enterprises (SMEs) benefit to the tune of $4.38 billion over 10 years.
In news that would be of particular importance to TradeEpay customers, the study found that SMEs that are paid more slowly than average, have about a third lower revenue growth than those that are paid more quickly. Again yet another indicator of how critical it is for tradies to get paid on time and the disadvantage to which tradies who have to deal with late payments are at.
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