Petition: Better payment terms for small businesses
Posted: 2 Sep , 2016By: SBF
We all know that late payments to small businesses for goods and services supplied can cripple cash flow and put the livelihoods of owners and employees at risk. With more than two million small businesses in Australia that is a huge amount of people who are being impacted on a daily basis.
Pay up in 30 days!
The Council of Small Business Australia (COSBOA) has released a statement calling for the development and implementation of a national prompt payment protocol to ensure small businesses are paid by big businesses within a tighter timeframe.
We couldn’t agree more! Here at Small Business First, we are determined to keep the momentum going and ask the government to set a code for best payment practices and petition Australia's biggest companies to sign the code for fair payment.
What’s fair? We think a maximum of 30 days to settle their bills.
So, what are we calling for exactly?
To start a movement for implementing fair payment standards, a petition is being prepared by Small Business First, which will ask the government to set a Prompt Payment Code. The UK has had one in place since 2008 where 60% of the supply chain has signed up. It's high time Australia got one too.
Once an official code is put into place, compliance with its principles should be tracked and enforced by a Prompt Payment Compliance Body. The guiding principles of the code should include:
1. Timely payment to suppliers and to promote 30-day payment terms as the norm.
2. Clear guidance for big businesses to encourage good payment practice.
This is your chance to show your support for small businesses, the engine room of Australia's growth! Sign our petition today and we will submit it for you to Australia's top 100 companies as well as the Minister for Small Business.
We need more than 2000 signatures on our petition so we can share it with government and industry leaders, asking them to help by putting their weight behind small businesses.
Don’t forget, prompt payment can make a huge difference to the millions of us who work in small businesses. It can also boost finances and allow us the freedom to invest in future growth.
Sign the petition now!