Movement to end late payments gathers pace

18 Apr 2017

Tech giant commits to prompt-payments, encourages other businesses to do the same

Late payments to small business could soon be a thing of the past according to accounting software provider MYOB.

“MYOB is committing to paying our suppliers within 30 days. Ensuring businesses are paid on time is one of the best things other businesses can do to keep the economy moving,” says MYOB CEO Tim Reed.

“We’re also encouraging other businesses to commit to paying invoices as quickly as possible. The whole economy will benefit if we can introduce a culture of prompt payments into our business community.”

The initiative comes in response to the proposal from the Business Council of Australia’s call for a voluntary industry code to ensure small businesses are payed within 30 days of an invoice being issued.

“We know there is goodwill out in the Australian business community about this issue. I want to encourage other business leaders to end the practice of late payments and commit to paying small businesses in a timely fashion,” says Mr Reed.

“We’re proud to do our part to support small businesses across Australia. MYOB has worked alongside these businesses for more than 25 years, we know the importance of ensuring they get paid on time.

MYOB’s most recent Business Monitor survey found more than three-quarters (77 percent) of Australian SMEs had been impacted by customers not paying on time.

The survey also found that late payments were affecting the personal finances of 35 percent of business owners, with 32 percent saying they had hit owners ability to cover expenses such as rent and power, while 52 percent saying late payments affected their stress and anxiety levels.

“There are more than 2.1 million small businesses in Australia, making them an extremely important part of the economy,” says Mr Reed.

“Ensuring each of them is paid promptly would speed up how quickly cash flowed around our economy and benefit everyone. Each of us has an important part to play in helping other businesses to succeed.”

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Enquiries:

Louise Halloran - Ogilvy Public Relations
M 0407 044 727 / E: louise@howorth.com.au

Conor Roberts, MYOB NZ Communications and Public Affairs Manager
M: +64 21 124 6004 / E: conor.roberts@myob.com

About MYOB

MYOB Group Ltd (ASX: MYO) is a leading provider of online business management solutions. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly through its Connected Practice Strategy and through the development of the MYOB Platform. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.