Business Daily Media

Men's Weekly

.

Earlytrade Report: Govt support not enough for traumatised Melbourne businesses entering extended lockdown

  • Written by PR Newswire

MELBOURNE, Australia, June 7, 2021 /PRNewswire/ -- Melbourne business owners have recorded a surge in demand for early invoice payments indicating that new government support measures may not be enough.

Data released by Australia's largest supplier payments platform, Earlytrade - which allows suppliers to confidentially request payment from registered customers an average of 20-30 days ahead of contracted terms - recorded two spikes in demand from Melbourne businesses since restrictions began.

While government stimulus is crucial, many Melbourne business owners will still struggle to pay staff, pay bills and meet orders, says Earlytrade chief executive, Guy Saxelby.

"There is a lot of built-up trauma for business owners in Melbourne. We saw a doubling of demand the week the lockdown was first announced as people prepared for the worst," he said.

"There was an even sharper spike in demand for cash flow, more than 130 percent, straight after the governments announced the new disaster payments and the extension of restrictions."

Mr Saxelby said small and medium businesses in Melbourne were hurting the most given their finances had already been depleted.

"It really stings when you have to debate the merits of paying staff over filling customer orders. There's a serious mental health toll; not just the obvious strains on the business," he said.

"Owners may have learned to gather their chestnuts for a longer winter, but they are coming out of a tough period into more pain. For many owners, the government support simply won't be enough to get through."

Mr Saxelby said it was in the interests of large customers with healthy balance sheets to support their suppliers with more flexible payment options.

"The banks are reporting long approval times on business loans plus taking on debt may not be the best option right now," he said.

"Owners who can get faster cash from their customers will be able to weather the storm and possibly even think about business pivots. For others, another seven days might be the last straw.

"Melbourne business owners need help from wherever it comes and that includes large customers who can shorten payment times to make sure their suppliers stay on-track, and they themselves can meet customer orders."

Earlytrade is Australia & New Zealand's largest supply chain payments network, trusted by 50,000 suppliers

earlytrade.com[1] 

 

References

  1. ^ earlytrade.com (bit.ly)

Read more https://www.prnasia.com/story/archive/3400637_AE00637_0

Qantas to Serve Nan’s Davidson Plum Cookie

Lake Macquarie, NSW (Awabakal Country): From a single mother’s kitchen bench to supermarket shelves, Wiradjuri entrepreneur Terri-Ann “Tezzi” Dani...

Minns Labor Government shutting down the Business Connect program

The NSW Opposition is concerned that the Labor government will shut down a support program that has assisted New South Wales businesses. In a media ...

Samsara Eco appoints Dr. Lars Kissau as General Manager for Asia

Australian biotech innovator Samsara Eco has announced the appointment of Dr Lars Kissau as its first General Manager of Asia. Based in Singapore...

From the first bounce to the final siren - small business lessons from the AFL Grand Final

The AFL Grand Final is one of the most anticipated days on the sporting calendar. This Saturday, the Geelong Cats and Brisbane Lions will battle i...

Australia’s top finance leaders recognised as CFO role expands

Amid surging regulatory demands and rapidly evolving industry, Australia’s most influential Chief Financial Officers will be honoured at the inaug...

Why outdated security leaves small businesses exposed to crime

Small and medium businesses in Australia are under increasing pressure to address security gaps that criminals readily exploit. An unlocked door, an...