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Mid-sized Australian businesses owe $8 billion in outstanding payments to suppliers, with more than $2 billion currently overdue, according to new research released by American Express.
Here are 9 key findings:
1. Issue of late payments
Late payment is not only an issue in the highest ranks of enterprise, but found within the mid-market.
30% of mid-sized businesses are unable to reconcile their invoices at least every other month.
3. How much do mid-sized businesses owe?
Currently, mid-sized businesses owe on average $66k in outstanding supplier payments.
4. What is the total market value owed?
Mid-sized businesses owe outstanding payments equating to a total market value of more than $8 billion, with 24% of this being overdue.
5. Early payment discounts
More than half (54%) of mid-sized businesses last year secured early payment discounts with suppliers at an average rate of around 2% off every invoice.
6. How many secured early payment discounts?
This proportion jumps up when you only look at the segment of high-growth business within the data set, with 77% of high-growth businesses securing early payment discounts.
7. High-growth businesses
And these high-growth businesses are more generous when it comes to passing on the favour to their customers.
8. How many offered early payment discounts?
75% of high-growth businesses offered early payment discounts to their customers.
9. Mid-sized businesses
Only 44% of all mid-sized business offered early payment discounts.
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