Unfair payment practices to SMEs attract scrutiny

In Australia, the federal government has asked for an investigation into ‘reverse factoring’, and long overdue payments amid complaints that large companies are paying their invoices up to 90 days late. And we know most SMEs may not be inclined to chase hard for payments for fear of offending their customers.

But is it good to just implement a ruling across all the different industries and make everyone commit to paying within 30 days?

RIABU’s Simon Littlewood and Mark Laudi discuss whether heavy top-down rulings even reflect commercial reality and how SMEs will be affected by such regulations.