15 May Time costing SMEs and trust being broken
Time is money, and time has never been more costly than when applied to an SME who is constantly chasing that elusive unpaid bill.
While 82.5% of SMEs have less than 30 day payment terms, statistics show most clients are still failing to pay on time.
From these statistics, the 3% of companies that spend up to or more than three months chasing payments shines a light on the culture of Australian businesses not meeting their obligations on agreements made. It also questions what constitutes a water tight agreement – a topic for another time!
GoCardless research surveyed 250 SMEs across Australia and the research findings found late payments are the second biggest concern for Australian SME Owners.
This trend explains why Australia’s two million SMEs have on average $38,000 in outstanding invoices to be paid.
It seems to be a common trend that business owners believe the customers will pay and trusting their word rather than having systems in place for chasing money owed.
Assuming people will pay because it is the right thing to do is what gets SMEs in trouble and in debt. With billzy® business owners are able to keep track of invoices and manage payment all from within the billzy® platform.
“Through our platform integration tools, managing invoices and payments is easy. With billzy® Inbox, our members can receive all of their invoices and using billzy® Connect, send all their invoices, all automatically digitised within the platform, with a simple view of their status, who has viewed and verified, paid and overdue, all in one place, all at a glance. Its then easy to pay with flexible payment options and its easier for your customers to pay invoices sent via billzy®”.
According to the Australian Bureau of Statistics, half of all businesses go out of business in the first three years of operation.
If businesses continue to be in a world of pain with money they’re owed, and therefore constantly in debt and left with a nightmare cash flow situation where growth is virtually impossible, this leads to the inevitable – businesses unable to pay bills and pay suppliers. This is evident in the Australian Securities and Investment Commission (ASIC), which demonstrates that poor cash flow is cited as a factor in 40% of business failing.
billzy® is here to ensure SMEs no longer have the challenge of poor cash flow, resulting in businesses enjoying longevity, and successfully making money instead of losing it, and being unable to reinvest. billzy® is a no brainer cash flow solution.