Mining companies slow to pay bills

Mining companies are bad at paying their bills, a new Dun & Bradstreet Trade Payments Analysis report has suggested.

The findings have caused the Chamber of Commerce and Industry Queensland to hit back at the results which showed many bills went up to 56 days without payment.

CCIQ senior policy analyst Megan Johns said feedback from chamber surveys conducted over the last 18 months indicated issues with paying creditors was widespread across all industries, the Daily Mercury reported.

"It's also more so a factor of a cascading effect on businesses.

"If a business at the top of the supply chain either goes bankrupt or fails to pay then every business along their supply chain down the line also has cash flow challenges and is put in a position where they might not be able to pay their creditors."

But Mackay Chamber of Commerce chairman Tim Miles said if companies servicing mines followed the correct procedures they would be paid promptly "90% of the time".

He explained that mining companies had set procedures to follow for prompt payment, and businesses needed to adhere to them.

"Companies need to be proactive about making sure their invoices are going to get paid … you can't just send them off and expect the money in the bank with mining companies," he said.

"It's also important to negotiate trading terms when you actually win the job … and not after you finish the job.

"It's a lot safer dealing with mining companies than other businesses because if you do what's required to be done and follow the correct procedures you'll get your money."

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