33% of SMEs wait 14–30 days to get paid: What that means for cash flow

Profit looks great on a spreadsheet, but you can’t pay your team or suppliers with "expected" income. For a chunk of Australian SMEs, cash flow is a constant game of "where’s my money?". 

Our recent poll of 212 business owners shows that roughly a third are waiting up to a month for payment. While common, these delays can stall momentum. Here’s how to navigate the gaps between sending an invoice and receiving funds.

33% of SMEs wait 14–30 days to receive payment

Our poll found that the largest group of respondents (33%) are waiting between two weeks and a full month to get paid. If you’re in this boat, you’ll know it’s a frustrating "no-man's-land".

During this time, cash is tied up in work already completed — staff have been paid, materials covered — which can create a temporary squeeze on liquidity. This makes it harder to respond quickly to new opportunities.

21% of businesses get paid instantly and 26% within 14 days

It’s not all waiting games, though. Around 47% of businesses are seeing cash hit their accounts within the first two weeks, with 21% enjoying the instant payment dream.

Usually, these are businesses with point-of-sale systems or strict "payment on completion" policies. 

While faster payments aren’t universal, they show that with the right tools and processes, it’s possible to reduce the gap between delivering work and receiving funds.

19% of SMEs don’t track when they get paid

Perhaps the most surprising stat: 19% of owners don’t actually track their payment timings. The thing is, without tracking, patterns in customer payment behaviour can go unnoticed. 

Monitoring payments gives you insight into which clients consistently pay on time, which helps with forecasting and cash flow management. It’s about clarity, not blame.

What these results suggest about SME payment behaviour

These results show one thing clearly: there’s no 'standard' wait time for Aussie SMEs. Many accept longer terms to maintain client relationships, while others benefit from faster payments thanks to automation and digital tools. 

This difference underscores an opportunity for SMEs: better visibility and more structured invoicing can reduce uncertainty and support smoother cash flow.

Why payment timing matters for cash flow

Cash flow isn’t the same as profit. You can be the most profitable business in your suburb on paper, but if your cash is tied up in someone else’s accounts receivable, you may not be able to pay GST, rent, or any other essential expenses.

When payments take 30 days, your working capital (the money you use for day-to-day operations) is trapped. This makes it hard to:

• Take on bigger projects: You can't buy the bulk materials you need to start the next job.
• Negotiate supplier discounts: You can’t pay early for a discount if you’re waiting on your own cash.

How businesses manage gaps between invoicing and getting paid

Successful SMEs use a mix of strategies to smooth cash flow:

• Invoice finance: Access cash from unpaid invoices quickly, using accounts receivable as collateral. You can get up to 90% of an invoice within 24 hours of issuing it.
• Short-term working capital loans: Cover lumpy periods where expenses hit before the revenue does.
• Strict terms and automation: Use software to send reminders automatically the day an invoice becomes overdue.
• Progress payments: For larger jobs, ask for 30% upfront, 30% midway, and the rest on completion.

Let’s get your cash moving

Waiting for payments shouldn’t slow growth. Whether you’re looking to explore invoice finance or you just need a business line of credit to smooth out the bumps, we’re here to help you find the right fit.

Check out our finance options or chat with one of our experts to see how we can help you take back control of your cash flow.

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