The small business ombudsman is urging the federal government to set a maximum payment time for big businesses to pay their small business suppliers, saying multinationals are using delays as a cheap form of finance.
An Australian Small Business and Family Enterprise Ombudsman inquiry into payment times found a growing trend of Australian and multinational companies delaying payments to their suppliers from a typical 30-day payment time to as far out as 120 days.
"Something must be done. Small business should never have to act as a bank for big business, helping to finance multinational companies," the ASBFEO Kate Carnell said in a statement on Wednesday.
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