EDITOR'S NOTE
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HIGH PROFILE MEETS HIGH-EFFICIENT,
LOW-POLLUTION LAND-USE
Hollywood mega-producer James Cameron
(Titanic) holds no punches – he wants New
Zealand to live up to our clean green image and
he believes that we need to eat less meat and
associated products as part of it.
On the back of a recent government cash
injection of $25 million into the NZ dairy industry,
Cameron and partner Suzy Amis Cameron spoke
publicly about turning their Kiwi dairy farms to
crops as part of their bid to provide the world with
a meat-free model and culture.
NZ Food Technology has reported extensively
on the plant-based eating and alternative trend
that has captured the globe. With mega stars
like Mr Cameron on the case, the debate on
maximisation of land production, reduction of
environmental and waterway pollution - to meat or
not to meat, really - is about to hit another gear.
Watch as industry adapts fast.
Greg Robertson
Publisher
BREAKING NEWS
LATE PAYMENTS
The research finds that half of all trade
credit invoices are paid late and
that solving the problem would see
small and medium businesses (SMBs)
benefit by A$4.38 billion over 10 years.
The report, “Paying the Price: the economic
impact of big businesses paying Australian small
businesses late”, is based on data from Xero
Small Business Insights (Xero SBI). Prepared by
AlphaBeta Advisors, it analyses more than 10
million invoices issued by more than 150,000
SMBs.
“Late payments are the scourge of small
business, and being able to name the staggering
figure of $115 billion for the first time gives
fresh urgency to solving the problem. We call
on big business and government to prioritise
this issue. Our research finds that addressing
the fundamental inequality of small business
carrying $115 billion worth of debt on behalf of
big business will deliver a significant benefit of
$4.38 billion to SMBs over a decade ,” says Trent
Innes, Xero managing director, Australia and
Asia.
The report finds that over half of all trade credit
invoices to SMBs (53 percent) are paid late,
being settled an average 23 days after they are
due. With small business issuing $216 billion in
invoices each year, this equates to $115 billion in
late payments.
If these invoices are paid on time, it will be
equivalent to transferring $7 billion in working
capital from large businesses to SMBs. The
returned $7 billion can be used by SMBs to
reduce debt or increase investment and output.
Allowing for extra costs for large businesses, this
will still deliver a net economic benefit to
the Australia economy of $2.54 billion over 10
years.
Having identified the impact of late payments,
the report also finds for the first time a direct link
between payment time length and slower growth
for small business. The study finds that SMBs
which are paid more slowly than average have
about a third lower revenue growth than those
paid more quickly. Long payment times also
have a domino effect across the economy, as
SMBs that are paid slower than average pay their
own suppliers 8 days later than those paid faster
than average.
“We can no longer accept it as the status quo
that Australian small business carries billions of
dollars of debt for big business,” added Innes.
“Unlocking this capital for small business to use
will give a significant stimulus to the
economy. Faster, predictable payments will
generate greater stability and confidence
amongst the small business sector. Small
businesses will grow faster, have better cash
flow, employ more people and take on more
business risk.”
COSTS AUSSIE SMALL BUSINESS
Impact on the economy worth $115 billion a year
A report from Xero reveals for the first
time the magnitude and impact of late
payments to Australian raising small
businesses, putting the value of outstanding,
late payments at $115 billion
a year – rasin interest on this side of the
ditch to such potential impacts on the
Kiwi economy.
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