Customers Paying Late? What an Australian Business Can Actually Do
Large Australian businesses agree to pay small suppliers in about 29 days on average, yet in the first half of 2025 it took them 64 days to clear 95% of those invoices. You can look up how any large customer pays before you extend them terms, and there is a right order for fixing the gap: process first, escalation second, finance last.
The short answer
If customers are paying late, work in this order. First, check how your large customers actually pay: businesses with more than $100 million in income report their payment times to the federal Payment Times Reporting Regulator, and the register is free to search by name or ABN. Second, tighten your own terms and invoicing. Third, escalate a genuine dispute through the Australian Small Business and Family Enterprise Ombudsman. Only then look at finance, such as invoice finance or a cash flow facility, to cover a timing gap that is structural rather than a customer who will not pay.
How late is late, according to the national data
The best public evidence on this comes from the Payment Times Reporting Regulator, which collects payment data from large businesses about how they pay their small business suppliers. In its January 2026 update, covering invoices paid between January and June 2025, the Regulator reported an average payment time of 27.4 days and a median of 23 days, against average agreed terms of 29 days. On those numbers, the typical invoice is paid roughly on time.
The problem sits in the tail. Across the same period it took reporting businesses 64 days to pay 95% of their small business invoices, up from 58 days in the previous cycle, which the Regulator described as a modest reversal of an improving trend. Only 68.2% of invoices were paid within 30 days. Its August 2026 update, covering July to December 2025, reported that average agreed terms had held at 29 days for three consecutive cycles and that the share of invoices paid within 30 days had improved by 6.6 percentage points since the scheme’s first cycle in 2021. It also said the scheme is moving from education to enforcement.
The average invoice gets paid close to on time. Your cash flow is decided by the one in twenty that does not.
For a small supplier, one slow payer among a handful of customers is not a statistic. It is the month the wages, the BAS and a supplier bill land before the money does.
Check how a big customer pays before you give them terms
Most small business owners do not know this exists. Under the Payment Times Reporting Scheme, businesses with income over $100 million, and certain members of corporate groups above that size, must report how quickly they pay small business suppliers. That information is published on the Payment Times Reports Register, which the Regulator describes as free to use. You can search a business by name, ABN, ACN or registered business name, see its reported payment terms and times, and check its fast payer list.
Two practical uses. Before you quote a large new customer, look at what it actually does, not what its terms say, and price or structure the job accordingly. If you already supply a large customer that pays slowly, its own reported figures give you a factual, non-confrontational basis for a conversation about terms.
The register only covers large businesses. For your smaller customers, your own ledger is the evidence: how many days past terms each one pays, on average and at worst.
Fix the process before you finance the gap
Finance costs money every month. Process fixes cost nothing after the first week. Before borrowing against slow payers, most businesses we speak with have room to move on at least a few of these.
- Invoice on completion, not at month end. A 30 day term that starts three weeks after the work finished is really a 51 day term.
- Put the due date on the invoice, not just the terms. “Due 14 October” gets paid more reliably than “30 days”.
- Match terms to the job size. Deposits or progress claims on larger jobs mean you are never carrying the full cost of the work.
- Follow up on a schedule. A reminder before the due date and a call the day after it passes, every time.
- Know who approves payment. With large customers, an invoice missing a purchase order number or sent to the wrong address can sit unpaid without anyone refusing to pay it.
If a customer disputes an amount or simply will not pay, the Australian Small Business and Family Enterprise Ombudsman can help small businesses work through a dispute, including referral to alternative dispute resolution. Its information line is 1300 650 460.
Is your gap a process problem or a finance problem
Send us your aged receivables and your next three months of fixed costs. We will tell you whether finance would help, which kind, and roughly how large a facility the gap actually needs, usually within a day. No obligation, and no fee at any point.
When the gap is structural, the finance options
Some businesses have tight processes and good customers and still wait. Construction subcontractors paid through a head contractor, wholesalers selling into large retailers and transport operators on long account terms often carry that gap permanently. In those cases finance is not a patch, it is working capital, and the question is which structure fits.
| Facility | What it lends against | Best fit |
|---|---|---|
| Invoice finance | Your outstanding invoices to business customers | A steady book of creditworthy customers who pay slowly. The facility grows as your sales grow |
| Cash flow loan or line | Your business’s trading history and cash flow, often with a general security agreement | Recurring gaps not tied to specific invoices, or businesses whose customers are consumers |
| Unsecured business loan | No specific asset, although a director’s guarantee is usual | A defined, one-off need where speed matters more than price |
| Secured overdraft | Usually property | Businesses with property security who want the lowest-cost standby facility |
Invoice finance is the one designed for this exact problem, because it turns the invoice you are waiting on into cash now. Our invoice financing page covers how discounting and factoring differ and what a lender looks at. If you are weighing an unsecured facility against one backed by security, our cost comparison of secured and unsecured business loans sets out where each works out cheaper, and our plain-English guide to how much a business can borrow covers how lenders size a facility.
When borrowing is the wrong answer
Finance fixes timing. It does not fix a customer who is not going to pay. If one customer is both your largest debtor and your slowest, borrowing against that exposure concentrates your risk rather than reducing it, and most invoice finance facilities are with recourse, which means the shortfall comes back to you if the customer never pays.
The other warning sign is tax. When customer payments run late, the ATO is often the creditor that gets paid last. If that has already happened, the finance conversation changes, and our guide to borrowing with an ATO tax debt covers how lenders treat it.
How Intellect Finance can help
We look at your aged receivables, customer concentration and fixed costs before recommending anything, and if the fix is process rather than finance, we will say so. When finance is the answer, we compare invoice finance, cash flow and unsecured options across our panel rather than defaulting to the one that is quickest to place. We will not advise you on debt recovery or legal action against a customer; that belongs with your solicitor or a collections specialist. Business and commercial lending for a business purpose is not regulated consumer credit under the National Consumer Credit Protection Act 2009, and Best Interests Duty does not apply. We charge you nothing on any loan type, with no arrangement fee and no clawback recovery fee. Penrith based since 2005, holding Australian Credit Licence 390611.
Read Intellect Finance’s Google reviews
Before you share your receivables ledger with anyone, it is reasonable to see what other clients say about how we handle that kind of information and that kind of conversation.
These reviews reflect other clients’ experiences. They are not a promise of any particular outcome for your loan, which will always depend on your circumstances and the lender’s assessment.
Frequently Asked
Late payment FAQs
What business owners ask us when customers are paying slower than their terms.
How do I find out how fast a large company pays its suppliers
Search the Payment Times Reports Register, run by the federal Payment Times Reporting Regulator. Businesses with income over $100 million must report their payment terms and times for small business suppliers, and you can search them by name, ABN or ACN. The Regulator describes the register as free, and it also publishes a list of fast payers.
How long do big businesses actually take to pay small businesses
For invoices paid between January and June 2025, the Payment Times Reporting Regulator reported an average of 27.4 days and a median of 23 days, against average terms of 29 days. The slowest invoices are the problem: it took 64 days to clear 95% of them, and only 68.2% were paid within 30 days.
Who can help if a customer will not pay at all
The Australian Small Business and Family Enterprise Ombudsman helps small businesses resolve disputes, including referral to alternative dispute resolution, on 1300 650 460. For recovery action itself, speak to a solicitor or a collections specialist. A finance broker is not the right person to advise on legal recovery.
Is invoice finance better than a business loan for late payers
Often, when the problem is timing and your customers are other creditworthy businesses, because the facility is tied to the invoices you are waiting on and grows with your sales. A cash flow loan can suit better when gaps are not tied to specific invoices, or when your customers are consumers rather than businesses.
What happens with invoice finance if my customer never pays
Most facilities are with recourse, meaning the business must cover the shortfall if the customer ultimately does not pay. Non-recourse facilities exist, but they are less common and generally cost more because the financier carries the credit risk. Check which you are signing before you draw on it.
Should I borrow to pay the ATO while I wait for customers to pay
Sometimes it is the right call and sometimes it hides a bigger problem. Lenders look closely at tax debt, and the answer depends on its size, whether a payment plan is in place and whether the underlying gap is timing or trading. Get the numbers in front of your accountant and a broker together before deciding.
Can I charge interest on late invoices
Generally only if your contract or terms of trade provide for it and the customer agreed to those terms. Whether a particular late payment clause is enforceable is a legal question, so have your terms of trade reviewed by a solicitor rather than adding a clause yourself.
The bottom line
Most businesses that come to us about late payers want a facility. Some need one. Plenty would get further by checking their largest customer on a free government register, invoicing the day the job finishes and putting a date on the invoice. Finance is the right tool when the gap is permanent and the customers are good, and the wrong one when it is covering a customer who has quietly stopped paying.
The uncomfortable part is that a slow payer who is also your biggest customer is a concentration risk before it is a cash flow problem. If that describes your ledger, borrowing against it may be necessary, but it should come with a plan to reduce how much of your business depends on that one account.
Joseph Sukkar
Joseph is Principal Broker at Intellect Finance and has spent more than 25 years in Australian finance, arranging business, commercial, asset and residential lending from the firm’s Penrith office. Intellect Finance charges clients no fee on any loan type. More about the team.
Sources
Payment Times Reporting Regulator, Regulator’s Update, January 2026, for average (27.4 days) and median (23 days) payment times, 29 day average terms, 64 days to pay 95% of invoices (58 days prior cycle) and 68.2% paid within 30 days, reporting cycle 1 January to 30 June 2025. paymenttimes.gov.au
Payment Times Reporting Regulator, Regulator’s Update, August 2026, for terms stable at 29 days, the 6.6 percentage point improvement in invoices paid within 30 days since cycle 1, and the shift from education to enforcement, reporting cycle 1 July to 31 December 2025. paymenttimes.gov.au
Payment Times Reporting Regulator, Information sheet 3, Who must report, for the $100 million income threshold. paymenttimes.gov.au
Payment Times Reporting Regulator, Payment Times Reports Register, for searching reporting entities by name, ABN or ACN and the fast payer list. register.paymenttimes.gov.au
Australian Small Business and Family Enterprise Ombudsman, How we help, for dispute assistance and the information line. asbfeo.gov.au
Important disclosures, general advice warning and licensing
General information only. This article is general information only and does not constitute financial, credit, legal or tax advice. It does not take your personal or financial circumstances into account. Before acting on any information here, consider whether it is appropriate to your objectives, financial situation and needs.
Legal. Terms of trade, late payment clauses, disputes and debt recovery are legal matters. Speak to a solicitor.
Tax. Intellect Finance is not a registered tax agent. Confirm anything involving an ATO debt or payment plan with your accountant.
Government data. Payment times figures are as published by the Payment Times Reporting Regulator for the reporting periods stated, cover large reporting businesses only, and are updated each cycle.
Financial difficulty. If your business is in arrears or under financial pressure, free and independent financial counselling is available through the National Debt Helpline on 1800 007 007.
Lender policy varies and changes. Descriptions of common practice are general observations, not any lender’s policy. This page publishes no interest rates and names no lenders. No broker can guarantee approval, pricing, a valuation outcome or a timeframe.
Best Interests Duty. Business and commercial lending for a business purpose is not regulated consumer credit under the National Consumer Credit Protection Act 2009, and Best Interests Duty does not apply.
What we charge you. Nothing, on any loan type. No arrangement fee for residential, commercial, corporate, asset, SMSF or personal lending, no fee for complex or specialist lending, and no clawback recovery fee if a loan is discharged early. Lenders pay us a commission on settlement, disclosed to you in writing in our Credit Guide before we provide credit assistance.
About the reviews shown. The reviews displayed on this page are genuine reviews published by clients on Intellect Finance’s Google Business Profile, shown live via a third-party reviews widget. They reflect those individuals’ own experiences and are not a promise of any particular outcome.
Intellect Finance Pty Ltd holds Australian Credit Licence 390611 and is a member of the MFAA and AFCA. Lending criteria, fees and terms apply. Article checked 25 September 2026.
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Find out what your cash flow gap actually needs
Bring your aged receivables and your next three months of fixed costs. You get a straight answer on whether finance helps, which structure fits and how big it needs to be. If the fix is process rather than a facility, we will tell you that instead. Penrith based since 2005, clients Australia-wide. No fee on any loan type. ACL 390611.
If money is causing you difficulty, free and independent financial counselling is available through the National Debt Helpline on 1800 007 007.
General information only. Business lending is not regulated consumer credit and Best Interests Duty does not apply. No broker can guarantee approval, pricing, a valuation outcome or a timeframe.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member