32 businesses have signed the new code, among them being four banks, Telstra, Coca-Cola, Lion, Energy Australia and Qantas. All signatories have pledged to help small business suppliers with new technologies that will speed up invoicing. Furthermore, the businesses will follow a process for preventing payments delays to SMEs.
The BCA claims that the new voluntary payment code will halve payment times to small businesses. The initiative comes after an investigation conducted by Small Business and Family Enterprise Ombudsman which revealed that many SMEs have not received payment for their services in due time.
Similar initiatives have also been adopted in the UK and Ireland. Officials believe that the new voluntary payment code will improve supply chain and streamline business operations across Australia.
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