Movement to end late payments gathers pace

Movement to end late payments gathers pace

Tech company commits to prompt-payments, encourages other businesses to do the same
Late payments to small business could soon be a thing of the past according to accounting software provider MYOB.

“We’ve committed to paying our suppliers within 30 days. One of the best things businesses can do to keep the economy moving is ensure other businesses are paid on time,” says MYOB NZ General Manager Carolyn Luey.

“We hope other businesses will also commit to paying invoices as quickly as possible. New Zealand’s economy would benefit hugely if we had a culture of prompt payments in our business community.”

The initiative comes in response to heightened awareness about issues that are caused when businesses are not paid on time.

“Cash is king for small businesses. We’ve heard from business owners who are waiting 2 to 3 months or more to get paid. It’s not good enough,” says Ms Luey.

MYOB’s research shows that one-in-20 small businesses are placed under “extreme pressure” because of late payments, with 41 percent reporting being placed under “quite a lot” or “some” pressure.

In addition to cashflow issues, half of small business owners report higher stress and anxiety levels because of late payments, with more than a third reporting a direct impact on their personal finances.

“There are more than 480,000 small businesses in New Zealand, making them an extremely important part of the economy. Ensuring each of them is paid quickly for work done would allow cash to flow faster around the economy, which would benefit everyone,” she says.

“We know there is goodwill in the New Zealand business community about this issue. I’m calling on other business leaders to eliminate late payments and commit to paying small businesses as quickly as possible.

“We’re proud to do our part to support New Zealand small businesses. MYOB has worked alongside them for more than 25 years, we know the importance of cashflow to their operations,” says Ms Luey.

-ends-

© Scoop Media