🇦🇺Australia

Delayed Accounts Receivable Payments

2 verified sources

Definition

In AR aging and collection processes, wholesalers experience cash flow drag from overdue payments, with specific examples of AUD 3,000 invoices on net 30 terms, and escalation to credit collections agencies after 7 business days overdue, plus storage fees for undelivered vehicles at purchaser risk.

Key Findings

  • Financial Impact: AUD 3,000 per average invoice tied up (30+ days); collections agency fees post-7 business days overdue; storage fees for delayed delivery (e.g., 7+ days at reasonable rate)
  • Frequency: Per invoice in standard wholesale agreements
  • Root Cause: Manual monitoring of payment terms, slow verification, high AR days due to credit sales without immediate cleared funds

Why This Matters

The Pitch: Wholesale Motor Vehicles and Parts players in Australia 🇦🇺 waste AUD 3,000+ per delayed invoice on tied-up capital and collections fees. Automation of AR aging reports and collections follow-up eliminates this risk.

Affected Stakeholders

Wholesalers, Accounts Receivable Managers, Credit Controllers

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

AR Collections Agency Costs

Collections agency fees (typically 10-20% of debt value) after 7 business days overdue; e.g., AUD 300-600 on AUD 3,000 invoice

Storage Fees from AR Delivery Delays

Reasonable storage fees per vehicle (7+ days, e.g., AUD 50-200/day based on industry norms)

Core Charge Return Warranty Disputes

AUD 5,000-20,000 per major dispute; 2-5% of parts revenue in refunds/rework

Manual Core Charge Inventory Write-offs

AUD 200-500 per lost core (e.g., battery); 20-40 hours/month manual reconciliation

Core Charge Refund Fraud

1-3% inventory shrinkage; AUD 1,000-5,000 per fraud incident

Verzögerte Zahlungsflüsse durch manuelle Bonitätsprüfung

Logic-based estimate: ~AUD 30,000–70,000 per year in avoidable interest/financing cost for a mid-size wholesaler due to 3–5 extra days in average time-to-cash, plus tied-up working capital of ~AUD 410,000–685,000.

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