Late payments are a persistent problem for small to medium businesses (SMBs), with poor cash flow, stress and delayed investment amongst the many debilitating outcomes.
We surveyed 800 Australian and New Zealand SMB decision-makers to understand the state of late payments today. Here's what they said.
41%
of Australian small businesses report that their payments are, on average, more than 14 days late, with 1 in 6 (17%) reporting they’re 30 days late.
17%
In New Zealand, the figures are 35% and 17%, respectively.
48-51%
48% (AU) and 51% (NZ) of small businesses say they are waiting longer for payments than 12 months ago.
59%
of SMBs in both countries are concerned that the number of late payers will increase in the next 12 months due to the rise in cost of living.
Attitudes are moving towards a begrudging acceptance.
15% of SMBs in both Australia and New Zealand estimate they lose up to $1,000 per month on late payments.
Late payments are forcing businesses to freeze growth and enter survival mode.
Getting paid continues to be a source of stress, tension and emotional fatigue.
Of those, 38% of those in Australia experienced increased stress at work and 36% reported an increase in stress for them personally.
A third (34%) of Kiwi SMB decision-makers reported increased tensions in their customer relationships, as did 24% of their Aussie counterparts.
Technology and prompt payments can turn a vicious cycle into a virtuous one.
Late payments are not inevitable. We're here to help.