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Small businesses losing up to $7b cashflow from late payments, study finds

June 24, 2019 / Peter Ryan
SHARESHARESHARE

Small and medium businesses are losing access to as much as $7 billion a year because bigger companies are not paying their bills on time, according to a study.And late payments on outstanding invoices, worth $115 billion, create a "domino effect" on the broader economy by tying up cashflow.Those findings were based on a study of more than 150,000 businesses, conducted by the business software company Xero.Based on its review of 10 million invoices, large businesses pay 53 per cent of invoices late by an average 23 days, making it harder for smaller businesses to take risks and employ new staff, Xero chief executive Trent Innes said.