The Sydney Morning Herald had a terrific report Wednesday on how large companies deal with small business in the payment for goods and services.
The report is on the back of research by Kate Carnell,the Small business ombudsman.
“It’s pretty close to extortion really,” Carnell said. “Large multinational businesses’ payment terms have blown out considerably. They are now moving to have standard contractual payment times of up to 120 days. It’s really bad for midsize businesses and a shocker for the SME space. It will kill SMEs.”
We have all been there, waiting for payment from big business clients. The cost makes the business not worth it.
It is good see the Small business ombudsman engaged on this issue. More please.