Faster govt payments

Faster payments from government entities to small businesses will increase productivity and improve cashflow at "the small end of town" according to the Otago Chamber of Commerce.

The Minister for Small Business, Stuart Nash, announced a new strategy streamlining payments to government clients earlier this week.

The Government will aim to pay 95% of domestic invoices within 10 business days by June next year.

Mr Nash also said the strategy would improve access to finance via a new online tool for small businesses to identify where best to get good finance options for their circumstances.

Otago Chamber of Commerce chief executive Dougal McGowan praised the announcement.

"One of the biggest issues that particularly small-to-medium businesses have is cashflow.

"Trying to create a seamless way in which those payments can be made will improve that both between small business to small business, but more importantly ... is around making sure they receive those government payments in a timely fashion, which is a good start."

The recommendations behind the strategy came from the Small Business Council.

As part of the strategy there will also be more efforts to build capabilities and skills among small business owners, particularly digital skills.

- Jacob McSweeney
 

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