Yesterday, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Bruce Billson, released a guide to help small businesses pay and collect debt.
The resource follows a 50 per cent jump in requests for help with debt-related matters last financial year.
The guide outlines how the Ombudsman can help small businesses with their debt challenges. While the ASBFEO reminded small-business owners that it can’t directly help with legal advice or debt collection services, it does have a range of resources to help them understand their situation and options.
The guide also points small-business owners to the small business debt hotline, small business mentoring service and other external help services.
Impact on business owners
“Outstanding debts can be overwhelming for a small business – whether you are owed money by a customer or you owe money to a supplier,” said Billson. “[Small business owners’] identities are interwoven into their business and the stakes are so much higher than just a job. Many have invested a lifetime – and put their life’s savings and family home on the line – to build up their business.”
The Ombudsman added that, in most cases, business owners are disputing the means and timing of debt repayment – not the amount.
“Businesses usually want to keep doing business with each other but struggle to find a workable pathway to resolve debt disputes,” Billson said. “This is where we can help.”
The guide is available to view here.
