While Covid-19 undoubtedly impacted the industry during 2020, retail was among the sectors that significantly reduced its payment times to suppliers and small businesses during December according to CreditorWatch.
According to the firm’s data payment times improved 31 per cent during December, though over the course of 2020 actually rose 29 per cent as the industry grappled with an intense increase in online retail and the grocery sector.
Similarly, transport, postal and warehousing saw a much needed improvement in payment times in December of 53 per cent, though payment times doubled over the course of the year due to the massive increase in demand for delivery services.
Payment times in general now must be publicly disclosed, with the Payment Times Report Act coming into effect on January 1.
The Act, which was introduced to parliament in 2018, aims to address the issue of delayed payments impacting the cash flow and financial buoyancy of smaller suppliers.
Businesses must issue payment reports within three months of the end of a six-month reporting period, with the first reporting period beginning January 1, making the first report due on September 30.