Business Daily Media

The Times Real Estate

.

Late Invoices Blow Out as Businesses Feel the Squeeze



Data from funding solutions company OptiPay shows businesses are taking longer to pay their bills as the global recession kicks in and SMEs begin to succumb to cash flow pressures.

The average days outstanding for invoices has increased by a week from 31 days to 38 days in just 6 months.

“This slowdown in payments is having a knock-on effect down the whole supply chain across just about all industries,” says OptiPay CEO Angus Sedgwick.

“It’s a sign that businesses are under mounting financial strain and are starting to become selective about the timing of when they pay invoices” he says.

OptiPay is continuing to see an increase in invoice financing enquiries from SMEs who need access to working capital.

“With the ATO back collecting tax debts that had been put on hold during COVID, as well as the SME Recovery Loan scheme and JobKeeper ending and continuing supply chain issues, many businesses which have previously weathered the past couple of years are suddenly realising their cashflow options are now limited,” says Mr Sedgwick.

“Banks are tightening their lending and there are no more government handouts so unfortunately pain is on the way for many SMEs.”

There were 3917 liquidations or administration appointments for Australian companies in 2021-22 with the biggest number of collapses in NSW and then Victoria.

28% of these insolvencies were from the construction industry.

“I think this is just the beginning,” says Mr Sedgwick.

“I expect we’re about to see insolvency levels go through the roof and the next 2 years are going to be really hard for business.”

“We know the construction industry is doing it tough but we’re also seeing ripples across most industries” he says.

About OptiPay

OptiPay, formerly TIM Finance, provides Australian SMB businesses needing cash flow to grow, with innovative funding solutions such as invoice finance, inventory finance and lines of credit. Their range of fast, flexible and affordable financing solutions help businesses solve their cash flow challenges, without the need for property security. Find out more at https://optipay.com.au

Cutting edge AI technology designed for doctors to reduce patient wait times launched in NZ

New Zealand specialist doctors now have access to Artificial Intelligence technology to help reduce patient wait times and experts say it could be...

Launchd Takes Off: Former AFL Stars Lead Tech-Powered Platform Set to Disrupt Talent and Influencer Marketing

Backed by Institutional Capital, Launchd Combines Five Leading Agencies and Smart Technology to Deliver Measurable Results Influencer marketing i...

Meet the Australian fintech unlocking rewards for small businesses

Small businesses make up 98 per cent of all businesses in Australia, yet they continue to bear the brunt of economic uncertainty. According to Credi...

Teleperformance (TP) Business Insights Report Reveals Key Shifts in Consumer Behaviour

TP’s Business Insights report  into consumer behaviors and preferences, taking in more than 57,000 respondents across 19 sectors, is shedding new li...

HubSpot launches platform-wide AI tools to help businesses close the adoption gap

HubSpot today unveiled more than 200 updates across its customer platform to help businesses grow better. The release introduces smarter tools, new AI...

Why Every Leader Needs a Personal Branding Strategy in 2025

One of the best investments you can make in 2025? Your Personal Brand.In today’s competitive and digitally driven business world, authenticity and...

Sell by LayBy