Half of NZ companies late paying bills

If anyone was wondering what the big issues are in the real business economy the latest statistics from Veda Advantage are a sobering reminder.

Veda managing director John Roberts says "tens of thousands of Kiwis – including business owners – are finding they just can't pay their bills." Veda research indicates a staggering 336,716 of NZ companies have debt which they have failed to pay after 30 days. This represents about 50% of the country's trading companies.

Julian Smith from MYOB says their research showed 25% of respondents to their recent survey indicated they were under extreme pressure because of the timing of customer payments. Late payments were causing business owners considerable pressure and concern. "A key issue keeping business owners awake at night is cashflow".

Smith also claims their data indicates the position today is much worse than during the height of the recession in July 2009.

Continued late payments can be very serious for business. Firstly, it has an adverse affect on obtaining future credit, and secondly, it can in many cases put the very survival of the business itself at risk.

At Interface we continually remind people that there is a solution that can mitigate these concerns – bringing forward customer receipts that are not yet due through our Invoice Discounting service. Getting some new cash into the business quickly and effectively can be a life saver.

It's important to act now before it becomes too late!

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