Late payments a $26B burden on Australian small business

From left to right: DragonBill founders: Mark Neil and Luke Hally with Victorian Minister for Small business, Innovation and Trade, Philip Dalidakis

The average Australian small business is owed over $10,000 and wastes 83 hours a year chasing it, with 27% of small business borrowing to cover late payments. That’s the finding of research by Intuit and PayPal.

In light of this, Victorian Minister for Small Business, Innovation and Trade, Philip Dalidakis, recently launched DragonBill, a fintech startup aiming to stop late payments to small business and sole traders.

Mark Neil, CXO and co-founder of DragonBill says that sole traders and micro businesses (up to four employees) feel the pain most: "they are the ones who take on the small jobs. They’re dealing directly with customers who may not understand that this job could be putting food on the table next week.”

Founded when Neil revealed to a friend that his family-owned construction business was owed $30,000, DragonBill was built to put an end to late payments to small business. It provides business with direct or escrow payment options.

Aside from the financial and business costs, with one in five small businesses risking closure if faced with a late payment, it place stress and strain on the mental health, relationships and families of small business operators. 

"Late payments are a real problem for small businesses. It's great to see innovative Victorian startups like DragonBill working to make life easier for small businesses here and on the global stage."  Minister Dalidakis said at the launch.

Late payment to small business is a global problem with $26B owed to Australian small business and over £40B in late payments in the UK. This fintech startup wants to make Victoria the home of the solution.