Recent research highlights the growing impact of late payments on Australian businesses. The Pursuing Payments 2025 report by GoCardless found that 63% of Australian businesses are losing money due to late payments, with some reporting average losses exceeding $10,000 per month.
The report also indicates a shift in business sentiment, with 68% of respondents now viewing late payments as an inevitable cost of doing business. Compared to 2023, almost half of Australian businesses (48%) report they are waiting longer to be paid than they were 12 months ago.
Late payments extend beyond administrative inconvenience. When customers fail to pay on time, cashflow is disrupted, placing pressure on working capital and limiting the funds available to operate and grow the business. Improving payment timeframes is therefore critical.
Practical steps to reduce late payments include implementing eInvoicing to streamline billing and approvals, offering multiple payment methods to improve customer convenience, and automating invoice reminders through accounting software. Regularly reviewing aged receivables and requesting upfront deposits for larger projects can also significantly improve cashflow certainty.
If late payments are affecting your business, our team can assist in developing a practical strategy to improve collections and stabilise your cash position.
