Delay in receiving payments can kill a small business

Someone told me.

Quote:
I run a business selling specialised equipment to government agencies. I have to submit a competitive tender to win the award. The equipment can cost a few hundred thousand dollars. The government agencies can take a few months to pay me.

I have to chase them. Their excuse is that a payment above $50,000 requires the signature of the director. The director is now overseas.

As my cash flow is tight and I am paying high finance charges, the delay can kill my business. I face this problem with large companies, but government agencies are the worst. I also have to waste my time chasing for payment.

Many other small businesses supplying products and services to government agencies face the same problem. They have to pay their supplier, pay GST and pay their employees upfront and wait a few months to get payment from the buyers"
Unquote

I agree with him. It is a bad practice for the large companies and government agencies to take advantage of small business in this way.