Urgency for prompt payments to small and medium enterprises (SMEs) highlighted by new data from Xero.
Xero has released analysis of COVID-19’s initial impact on New Zealand’s SME sector. It highlights the importance of paying SME invoices promptly as they move into the rebuild and recovery phase.
Craig Hudson, Xero Managing Director of New Zealand and the Pacific Islands, says the best thing businesses can do to keep the New Zealand economy afloat and support the SME sector is to pay your bills promptly.
“If we can keep money circulating around the country, this will be one of the ways to help alleviate the economic shock of lockdown as we begin to reopen as a nation,” adds Hudson.
“We all know small businesses are feeling the pain of the economic shock caused by COVID-19, and spending habits completely changed.”
NZ govt asks large businesses to ‘step up’
Xero’s latest analysis reinforces the New Zealand’s government’s call for larger businesses to support the economic recovery by faster payments to SMEs.
The government has asked the top 50 companies on the NZX to step up to support the SME sector with prompt payments.
Fonterra – New Zealand multinational dairy co-operative – has confirmed it is seeking to accelerate payments to its 10,000 farming businesses and 5,000 small vendors who have business with Fonterra worth up to $300,000.
“All businesses across supply chains have a part to play in keeping cash moving and keeping the economy moving,” says Stuart Nash, New Zealand’s small business minister. “SMEs have been hit hard by the global pandemic. Now more than ever, they need to be treated fairly as we emerge into a recovery phase.”
“Cash flow is crucial to kick-starting the economic recovery for our small businesses.”
Adapting to COVID-19
We know it’s tough out there. For some of you, things have never been tougher. To help keep your cash flowing and acknowledge the stain your customers will be feeling, CreditorWatch Collect has created a dedicated web page to help businesses adapt to COVID-19.
The page includes:
- Key considerations before you change your reminders.
- New reminder templates for COVID-19 – feel free to download, customise and send to your customers [view in Google Docs] [view as Word Doc].
- Instant access to our team (via Live Chat) to advise and action your required changes.