Payments code helps small firms

MOMENTUM to get small business paid faster is growing with a new voluntary payment code, ensuring they are paid within 30 days of invoicing, backed by some of Australia’s biggest companies.

A backlash, largely against the big end of town which has been accused of stringing out payment to small business suppliers, has seen the Business Council of Australia team with the State Government to launch the Australian Supplier Payment Code yesterday.

Under the voluntary code, businesses will pledge to pay their bills to small suppliers promptly, reversing a trend that saw payment terms push out to more than 90 days.

The big four banks, BHP, Coca Cola Amatil Limited, Alcoa, Lendlease, Rio Tinto, Lion, MYOB, Qantas and Telstra are among the heavy hitters signing up to code. There are nearly 40 companies signed up so far.

Small business blame late payment for undermining their growth, creating cashflow problems and limiting their ability to employ staff.

Victorian Small Business Minister Philip Dalidakis said the code, effective from July 1, came after the Federal Government failed to take the lead.

He said Victoria seized the chance to partner with the BCA with a vision to expand the code throughout Australia.