Small businesses struggling in Australia’s sluggish economy continue to fight an uphill battle in 2025, as data shows late payments to small and medium-sized enterprises (SMEs) have surged to their highest level in four years, choking their finances and in some cases triggering bankruptcy.
Larger businesses are taking longer to pay small businesses, dragging out payment times from 30 to 90 days, or more. With business-to-business payment defaults more than doubling in the past 12 months, this puts significant strain on cash flows, making it more difficult for SMEs to stay afloat and meet their financial commitments.
Small businesses are being hit by late payments.Credit: Ben Symons
One source from a labour hire firm, speaking on…
