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Sydney ,12 March 2009
A research report commissioned by leading mobile payment provider, Mint Wireless, reveals almost one in five Australian SMEs have lost their temper with a customer over slow paymentof invoices.The study, which examined the financial management of 1800 Australian SMEs, reveals that NSW and Victoria tie for the title of most aggressive with 22% of SMEs in both states having confessed to having 'gone spare' with clients who have been slow with payment. The research revealed that West Australia, in comparison, is far more relaxed and patient when it comes to dealing with slow payment, with only approximately half the amount of SMEs (12%) admitting to having lost control with clients.
Mint Wireless CEO, Alex Teoh, said that while the figures are startling, he predicts the level of frustration felt by SMEs will only exacerbate as the economy slows and payment terms are stretched."The saying 'it's just business' obviously doesn't apply for many SMEs and understandably many become emotionally involved when customers are slow in payment. For smaller organisations, it can only take just a few customers lagging with payment to cause cash-flow headaches and place stress on the ongoing viability of the business.
According to Dunn & Bradstreet's latest trade payment analysis*, NSW and VIC are the slowest paying states on average and payment terms across all industries are approximately four weeks above normal levels, at 56.5 days."For family-run small businesses, slow payment can not only mean a lack of money to meet business expenses, but often a shortfall in money to put food on the table at home. It's little wonder that so many SMEs lose control at times"Unfortunately, I can only see this level of volatility growing as the economy slows. There will be an inevitable convergence of forces where cash-flow becomes increasingly critical for SMEs and at the same time customers will drag their heels with payment in order to protect their own business interests".
Mr. Teoh said. Looking at the main aggressors, men and the younger generation are more likely to lose their temper with a client over slow payment. The research findings revealed that men are 40% more likely to 'snap' at a client than women (21% of men admitting to losing their temper with clients as opposed to only 15% of women) and those under the age of 30years were double the national average (38% under the age of 30years as opposed to the national average of 19%).
"In many respects it's not surprising that the younger generation is finding it difficult to remain calm when dealing with slow paying customers. This economic downturn is the first they would have witnessed and, having not been through one before, no doubt they are more anxious and distressed than their more experienced counterparts. "Cash-flow management will become increasingly critical for SMEs as the economy progressesinto this downturn and all businesses should be actively developing strategies to ensure they remain on-top of payments due to them," Alex said.
About Mint Wireless Limited:
Mint Wireless Limited (www.mnw.com.au) is a technology company focused on providing mobile payment solutions and the development and management of portable technology products and services. Mint's portable payment and invoicing system is a software application for Microsoft Windows or Blackberry smart phones and includes a pocket-sized printer and card reader. Anyone processing payments in situ can accept credit cards and other payment types, process credit card transactions, print an invoice on the spot and download all transactions into their accounting and ERP systems. Mint Wireless Limited also distributes a range of portable technology products, flash memory products and consumer electronic components to many of Australia and New Zealand's largest retailers through its subsidiary Mint Trading Pty Limited.
For more information contact:
Alex Teoh
Chief Executive Officer
P: 02 8752 7888
E: Alex.Teoh@mint-wireless.com |
