The Federal Government announced a vital $ 23.3 million initiative to help small businesses adopt eInvoicing.
Robin Sands, CEO of Link4, a leading eInvoicing solutions provider, stated,
“This funding is very important for SMBs and provides the ability to adopt eInvoicing that would enable better cash flow management and ensure timely payments.”
Currently, government agencies are setting a precedent by paying eInvoices within just 5 days, dramatically improving cash flow for countless businesses. However, this is not a hard and fast rule for B2B transactions.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) reports that one in four large businesses takes over 120 days to pay small business customers, with only 30% paying within 30 days. Such delays disproportionately affect small businesses, which experience late payment rates three times higher than larger corporations.
The Federal Government, in an attempt to resolve this, implemented the ‘Payment Times Reporting Scheme‘, which mandates that large businesses report their payment times to small businesses and improve payment performance.
“For SMBs, overdue invoices are more than just a hassle; they severely hinder growth,” Sands emphasised. “Cash flow is the lifeblood of any business. Disruptions can stifle expansion and day-to-day operations.”
Sands highlighted that eInvoicing can significantly reduce payment delays. “eInvoicing streamlines payments, providing clear, accessible records of transactions,” he said. “If an invoice comes into the accounting system in an efficient way, it is easier for it to be paid faster.”
Delayed payments impact not just individual businesses but the broader Australian economy.
“When SMBs face payment delays, their ability to invest, hire, and grow is constrained. This stifles innovation and job creation,” Sands noted.
Large businesses may see delayed payments as a financial safeguard, but this overlooks the broader impact.
“Lengthy payment cycles can harm reputations and lead to higher future costs as suppliers raise prices to cover risks,” he added. “Ultimately, this cost-saving measure can become more expensive over time,” Sands remarked.
“The problem of delayed payments is complex, but eInvoicing offers a clear solution. By embracing eInvoicing, businesses can improve efficiency, transparency, and standardisation, leading to faster payment cycles and healthier cash flow. For SMBs, this can mean the difference between stagnation and growth,” Sands concluded.
“The overwhelming response to this event underscores the urgency and importance businesses in Malaysia are placing on preparing for the eInvoicing mandate,” said Mr. Robin Sands, CEO of Link4. “We are thrilled to see such strong interest in Link4’s solutions and our commitment to empowering businesses of all sizes with the tools and expertise they need for a smooth transition.”
“Link4’s extensive global experience and proven track record in eInvoicing implementation make us a trusted partner for Malaysian businesses,” said Ms. Xavier. “Our solutions cater to diverse needs and our commitment to local market compliance provides local businesses with the confidence to navigate this transition seamlessly.”
About Link4
Link4 is a leading eInvoicing solutions provider that empowers businesses of all sizes to streamline their invoicing processes, reduce costs and improve efficiency. With a focus on innovation and customer satisfaction, Link4 has been providing eInvoicing solutions since 2016. The company’s cloud-based platform allows businesses to exchange eInvoices instantly and securely, helping them achieve their invoicing goals. For more information: https://link4.co/