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Even with businesses heading into the federal election, and candidates moving swiftly down the garden path to making serious plays in the business landscape, there is hope around the corner. Recent data from Dun and Bradstreet Australia has signalled that SMEs are feeling positive effects when it comes to their invoices being paid more swiftly, so business finance is looking up.
Figures released on May 31 this year indicated that payment times had reached a new record-low of just 43.7 days. This is down from 44.1 days last quarter, and shows that recent attempts to encourage suppliers to pay their invoices on time might be working.
It's even a significant improvement on figures from the same period last year, which were at 50.4 days, as recorded in Dun and Bradstreet's Trade Payments Analysis.
Has your business felt the effects?
It's unlikely that an improvement of just 0.4 days has made a noticeable difference to the operational running of your SME; however, the improvement is more significant in the greater scheme of things.
According to the research, businesses with between six and 19 staff members were the fastest at paying their own invoices, taking an average of just 40.2 days. Conversely, however, there were 13,023 failed businesses in quarter one of 2016, which was up from 12,383 in the same period for 2015.
"The fall in the trade payments times suggests that firms are cashed up and are able to pay their bills in a more timely manner," said Economic Advisor to Dun and Bradstreet Stephen Koukoulas.
"These results, which pre-date the most recent interest rate cut from the RBA, suggest that interest costs were not a problem for most businesses."
Clearly, businesses that have improved their cash flow over this period are starting to feed that back into the SME sector, and you can make the same move a reality as well.
Use invoice finance to boost your business
Shoring up your cash flow and allowing your business room to comfortably pay invoices is one thing, but when unpaid invoices begin to stack up, you'll be wanting to have a solution to this blockage in your revenue as well.
By using invoice finance, you'll be able to give control of your invoice collection over to Earlypay and have a percentage of the total amount paid to you. This will free up your hard-earned cash flow and allow you to grow and develop as you should be able to.
Get in touch with Earlypay today to see how this solution could work for you.