New data collated by OptiPay reveals a sharp increase in the number of days outstanding for invoices issued, particularly to businesses in the manufacturing industry, from 42 to 58 days in the last six months. This situation is putting extra strain on Australian manufacturing on top of the ongoing inflation and global supply issues it is already facing.
“The typical terms of manufacturing businesses is 30 days meaning on average our clients are being paid 28 days after the due date of their invoices, so nearly double what it should be,” OptiPay CEO, Angus Sedgwick, said. “The ramifications of inflation and global supply issues is constrained cashflow and this is having a knock-on effect for all businesses.
“We’re seeing the problem exacerbated by rising interest rates, the ATO ramping collection activity for unpaid tax from the COVID period and access to capital from traditional sources drying up,” Sedgwick added, warning that the next 12 to 18 months are going to be a challenging time for Australian SMEs and that it is critical that businesses have strong business foundations and a cashflow management plan in order to survive.
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Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
