Getting Paid

Getting paid from other businesses is one of the most significant challenges, as approximately 40% of cases by a regulatory body or ombudsmen are handled accordingly to try and find a solution. This is a drastic consequence of the fixation regarding cash. And then when you are paid, the value of the currency you hold continues to devalue.

Then there are late payments to try and deal with, let alone the disruption this has on cashflow. This obviously has such negative implications potentially resulting in deferred payments for staff, and of course related suppliers.

Late Payment Effects and Restraints

There’s a severe late payment mentality in business, that is somehow accepted/ignored yet overlooked for the loss of a potential customer in order to potentially gain another sale.

1. The anomaly is however, that small businesses loses out to the value of 18% meaning they have to suffer further overdraft pressure.
2. Large businesses can take up to 120 days to make the full payment. This can leave small business in a very awkward situation, if not trying to adapt (sometimes with no option other than to close down) to an appalling act by the bigger businesses.
3. In the longer term, tax obligations are hindered, let alone the business’s ability to pay acknowledged expenditure.
4. This will lead to most businesses operating with near to zero cash reserves, leaving them extremely vulnerable.

Trade Gate stops this!

www.tradegate.au