IN AUSTRALIA, the average time taken for invoices to be paid is 53 days.
The long wait for payment can stop businesses from making investments in research, new employees, better equipment upgrades, and other growth that can benefit the company in the long run.
It’s also about survival, because cashflow is your life blood – you need to be able to cover your basic expenses and profit enough to ensure long-term stability.
The biggest mistake that businesses make is trying to manage cash flow problems when it’s too late.
It’s a common assumption that securing financing against outstanding invoices is a measure to take if your business is struggling.