Delays hurt business
LOCAL small businesses are suffering while big businesses delay payments, according to a new survey.
The Bankwest Curtin Economics Centre’s (BCEC) Small Business Survey 2017 reveals cashflow problems are impacting the vitality and growth of the small business sector.
“More than half of small businesses in WA experience late payments from larger businesses for products and services, with one in five small businesses facing payment delays of a month or more,” BCEC director Professor Alan Duncan said.
“Late payment is a huge problem for small business owners in Western Australia, and adds significantly to the financial stresses they face on a daily basis.”
Belmont Enterprise Centre (BEC) chief executive Carol Hanlon said a big problem was a chain reaction of non-payment.
“One major issue facing small businesses in Perth is the larger firms going into administration, hence bad debts to the small business and then the domino effect comes in where the bad debts get transferred right down the line, for example to small contractors,” Ms Hanlon said.
She encouraged small businesses to know their rights.