Late payments threaten small and medium enterprises
15 November 2019
Making small suppliers wait more than 30 days before paying them delivers a double blow to the economy because when times are tough and jobs scarce, it is small business that that steps up to the plate, often able to grow employment while larger corporates shed jobs.
“Paying bills on time should be a national duty for large corporates, government departments, provinces , municipalities or individuals,”says Geoff Jacobs, President of the Cape Chamber of Commerce and Industry.
“The news may be dominated by non-payment of electricity bills by municipalities and state-owned entities like South African Airways and Eskom but it tends to ignore the serious knock-on effect of late payment on the small end of the private sector.
“While bigger corporations can borrow to bridge a cash flow problem, small business operators cannot. For them late payments don’t merely hurt, they can kill. As others have noted, late payments are the assassins of small businesses”, Jacobs said.