Tuesday 17th July 2012

Payments delayed

by Alan Thornhill

Australian business is taking longer to pay its bills.

This is hitting small business very hard

The accountancy firm, Dun and Bradstreet, reports that the number of payments falling within the standard 30-day term fell 16.5 per cent in the June quarter.

Dun & Bradstreet Director, Adam Siddique, said cash flow issues within the small business sector would have “a significant knock-on effect to the rest of the economy.”

“It is particularly concerning that small to medium enterprises are waiting longer to be paid, ‘ Mr Siddique said.

They, in turn, would take longer to pay their own bills.

“Trade credit constitutes a significant and critical portion of non-banking finance,” he added.

“ When this is delayed, it withholds millions of dollars from businesses and the wider economy,” Mr Siddique warned.

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Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.

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