Payment times and practices refer to:
- Payment times: getting paid later than the agreed time or extending terms beyond 30 days.
- Payment practices: customers' processes that extend payment time. For example, payments are processed at the end of a month for the previous month. So suppliers can wait up to 60 days for goods delivered on the first or second of a month.
In 2016, small businesses and family enterprises told us that late payments are their number one problem. They reduce cash flow which impacts on business growth and can easily put a business out of operation.
So in April 2017, we conducted an inquiry to examine payment times and practices in Australia.
The Inquiry found that incorrect invoices are the biggest cause of late payments.
As a result of the inquiry, we developed a National Payment Transparency Register to highlight Australian businesses that pay small business suppliers in 30 days or less.
Read our information about dealing with an unpaid invoice for tips on avoiding chasing invoices or taking further action.