The challenge of payments for small business

It was terrific hearing Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman, speak at the Vodafone COSBA National Small Business Summit in Sydney yesterday last week. Kate is a passional champion for small businesses in Australia. Her grasp of what matters is terrific as is her knowledge of how to navigate the regulators and politicians.

One topic that kate Carnell spoke to was payments to small business. Government departments have been lax in this area. However, they are committed to resolving it, and are through faster payment action.

The Australian Small Business and family Enterprise Ombudsman office has created a payment transparency register, which serves to highlight Australian businesses that pay small business suppliers in 30 days or less. Click here to see the register.

This issue of payment is one I have written about here before as it is something newsagent suppliers complain about in relation to our channel. One supplier who closed their business recently complained retailer payment times were a key factor in their decision to close.

Other topics touched on that are of interest to small business retailers included:

• Workplace relations.
• Barriers to investment in small business.
• The ATO and small business.
• Fintech lending.

This last area, on Fintech lending, is particularly interesting as it is about lending from tech companies in the finance space. This is often lending of last resort, expensive lending, lending small businesses owners are likely to pursue. It is a type of lending I would warn people to be careful in considering.

I came away from Kate Carnell’s presentation of contribution at the Summit with confidence that her office is a champion for small business and that Kate herself is someone we can rely on to help in a range of areas, particularly in our channel el where big suppliers and disruption are two key factors at play.