MYOB puts its money where its mouth is with prompt payment pledge

MYOB suppliers will be paid within 30 days – demonstrating that the tech company is willing to back up its words with action.

Late payment from big companies is a burning issue for many small to medium sized companies in Australia.

The latest Business Monitor survey found that more than three quarters (77 percent) of Australian SME companies have been impacted by not being paid on time.

The survey also found that late payment affected the finances of 35 percent of business owners, with 32 percent saying late payments affected their ability to pay rent and power bills.

In addition, MYOB research from last year found that 52 percent of SME owners being paid late suffered increased stress and anxiety.

In fact, the increasing effect of late payments on small businesses is something that has been on MYOB’s radar for a number of years.

Having the research is one thing, but acting on it is quite another.

It’s why MYOB chief executive Tim Reed said MYOB is committed to paying its own 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,” he said.

“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 pledge comes on the back of a proposal from the Business Council of Australia top introduce a voluntary industry code of conduct to make sure businesses are paid within 30 days of an invoice being issued.

Did you know? With MYOB invoicing software you can see which clients have paid and set up automated payment reminders to nudge those who haven’t.

“We’re proud to do our part to support small businesses across Australia,” said Reed.

“MYOB has worked alongside these businesses for more than 25 years, we know the importance of ensuring they get paid on time.

“Each of us has an important part to play in helping other businesses to succeed.”

Businesses such as Coles and Woolworths have also recently pledged to reduce the number of days it takes for small business suppliers to be paid.

“We know there is goodwill out in the Australian business community about this issue,” said Reed.

“I want to encourage other business leaders to end the practice of late payments and commit to paying small businesses in a timely fashion.”