De­lays hurt busi­ness

Southern Gazette (South Perth) - - NEWS -

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.

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