I heard from several Queensland newsagents yesterday saying they would close as a result of the change in the bank account sweep by Tatts which took effect yesterday. Pretty dramatic stuff for what at first glance appears to be a simple payment day change.
The timing of the change appears to be the issue: a drawdown by Tatts Friday and again today, a super and tax hit this month, magazine accounts due this week and other suppliers chasing money more aggressively.
Given the timing of cash hits in August, Tatts would have been better advised make the change next month and maybe in a more phased way.
The next few days will show if the concerns of some has followed through with business closures.
Next week shouldn’t be a problem , the problem this week was only having 4 days to find 7 days worth of money , and factor in sunday being such a slow day and monday being a lot of payouts from sat draw it only really left 2 days trade to find the money .I would say the guys and girls at GG and NDC will be doing over time sending out emails and phone calls chasing money this week .
The Golden Casket draw date has been moved forward again, it used to be on the Monday a full week after we received our invoice. Now News Ltd want their money weekly instead of monthly, even with the very best practice of asking for advance payment for home deliveries, there is still money that doesn’t come in for weeks after we have paid for the papers. Its just another kick in the guts for newsagents who have tried to do the right thing by, so called ‘business partners’ for many years. Yes things are tough, but these big businesses don’t seem to care about the their small business partners, who are the ones dealing with ‘their’ customers face to face everyday.
I don’t see how anyone would have to close because of this change. I have found G&G and Network do not get too pushy until its almost the end of the month if they know you pay by EFT. I used to get very worried if I went past the 20th but don’t worry at all anymore. I found it much harder to adjust to paying my GNS invoices almost 2 weeks earlier when they changed our terms.
GNS changing trading terms as well ?
Shaun until early this year you were given 30 days + 15 days (45 days) to pay your GNS ac. but it was changed to 30days plus 5 days. I found this very hard to adjust too .
i never pay NDC or GG til last couple of days before end of the month, i get the phone calls and emails every month but that’s as far as they ever go. Once things settle down i actually prefer Tuesdays as the sweep day for Golden Casket.