Late payments cost small businesses $456 million last year

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New Zealand’s small businesses have lost $456 million because payments to them were late for 45 percent of all invoices generated last year.

Accounting software company Xero said the average small business invoice was paid 6.3 days and 8 percent of payments were more than a month late.

Small businesses that received 60 to 80 percent of their bills late had 19 percent more “cash flow crunches” than small businesses that were typically paid on time.

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“Delays in making refunds can be the difference between a small business staying open and operational, or making difficult decisions about the future viability of the business,” said Bridget Snelling, Xero New Zealand Country Manager.

“Spending pressure is one of the biggest stressors for small Kiwi business owners, with cash flow already being impacted by inflation and a decline in discretionary spending as consumers tighten their wallets.”

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