Statistics from a recent survey taken in October 2016 regarding Australian business to business payment behaviours.
- 84% of respondents reported late payments of invoices by B2B customers
- 49% of Australian suppliers’ B2B sales made on credit
- 24% of suppliers say cash-flow is the biggest challenge to profitability
- Suppliers paid their invoices late due to their customers’ late payments
- Australia averages 25 Days Sales Outstanding (DSO) compared with regional average of 41 days
- Australian suppliers wait longer to collect payment on export than on domestic credit sales
- Australian suppliers most convinced that customers pay invoices late intentionally for financing purposes
- 39% of Australian suppliers had to delay payment of invoices to their suppliers due to late sales payments
- Australia has 57.6% foreign default rate and 40.3% domestic B2B trade that remains unpaid after due date
Advantages of using Accrutus Capital Invoice Finance for small business growth
- Improve business account management
- Pay for inventory and operating expenses
- No need for bank overdrafts and collateral
- Use existing customers to fund your future growth
- Use invoice finance to fund strategic opportunities
- Get early settlement discounts for suppliers and creditors
- Reduce the time and resources spent chasing bad debts
Invoice finance used for working capital to boost short-term business cash flow. Entrepreneurs need to stay competitive and maintain a healthy profitable operation in harsh economic conditions. There is no requirement for property collateral, bank overdrafts or complicated paperwork.
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