Inside Your Business: Effect of late payments for SMEs and how to deal with it.

Loading player...
According to the quarter 3: 2021 Business Partners Ltd SME Index, the biggest challenge that South African small businesses project they will face in the next six months is around cashflow. For a small and medium-sized enterprise (SME), so much rests on being able to strike the delicate balance between money coming in and money going out. As such, late payment processing can catalyse a ripple effect that can have serious consequences for an SME. Both the public and private sectors need to re-evaluate their payment processes for small businesses and understand that the standard 30-day lead time on payments must be upheld and respected and where possible, shortened further.

This is the opinion of Gugu Mjadu, Executive General Manager: Marketing at Business Partners Limited, who works closely with many South African small businesses. “From experience, we know that above all the unique challenges that South African SMEs face, cashflow is the most significant. Whether a payment is processed within 30 days or not, can make the difference between whether an employee is paid on time and ultimately whether a business survives or folds. We urge corporates and state institutions to come to an appreciation of the seriousness of this issue and to re-examine their policies, action and support the swift payment of SMEs,” Mjadu asserts.
16 Mar 2022 4AM English South Africa Business News · Investing

Other recent episodes

Paymenow data shows SA workers lose 40% of purchasing power.

A new Paymenow analysis shows South African workers have lost more than 40% of their purchasing power over the past decade—even as headline inflation stayed within target. Rene Richter, Reward & Benefits Lead Advisor at Paymenow, joins Kaya Biz to unpack why wages aren’t keeping up, how transport and utilities…
21 May 2PM 10 min

Oceana H1 Results: Lucky Star Shines as Fishmeal Stumbles

Oceana Group has delivered a resilient set of interim results despite a 6% drop in revenue. Lucky Star and Wild Caught Seafood carried the half‑year, while Fishmeal & Fish Oil struggled under weak catch volumes and global pricing pressure. CFO Zaf Mahomed joins Kaya Biz to break down margins, cash…
21 May 2PM 18 min

Inside Investec’s Strong 2026 SA Performance

Investec SA has delivered a robust full‑year performance in a tough macro environment. CEO Cumesh Moodliar joins Kaya Biz to unpack the 5.2% rise in SA operating profit, strong momentum in specialist banking, wealth inflows, digital transformation, and what the bank expects from the South African economy heading into 2027.
21 May 2PM 13 min

Stats SA Explains April’s Sharp Inflation Rise to 4%

South Africa’s inflation rate surged to 4.0% in April, driven by fuel, transport, and housing pressures. Stats SA’s Patrick Kelly unpacks the numbers, the 1.1% month‑on‑month spike, and what’s behind the dramatic swing in transport inflation. We explore regional differences, goods vs. services inflation, and what this means for households…
20 May 4PM 11 min

4% Inflation and the SARB’s Next Move

With inflation back at 4% and oil‑driven risks rising, the SARB faces a critical decision next week. Economist Sifiso Skenjana unpacks the April CPI print, the credibility of the new 3% target, and whether a rate hike is now on the table. We discuss real interest rates, global financial conditions,…
20 May 4PM 15 min