The problem of SMEs against the law of timely payment

elEconomistaAmé | Chili
– 9:11 – 8/21/2018

Photo: archive

The invoice of timely payment promised to offer a number of benefits to SMEs. However, the main requirements of small and medium-sized enterprises are not reflected in what the government proposes: shortening the payment term of companies to 60 days and regretting the possibility of removing the use of VAT credit.

The criticism was not put in wait by the leaders of the association of entrepreneurs, who see no real gain in the project that will be voted in the Lower House next week, pointing out that the payment term of the companies should be 30 days as in a moment was pointed out.

Cristián Lecaros, CEO of Inversión Fácil, stated that the main benefits of approving a law of timely payment within 30 days are: "SMEs would have a much more comfortable cash flow than they manage.They have the constant stress to finance their employees and suppliers within the month, while they only collect the payment from their customers in terms of 60, 90 to 120 days. If this initiative were achieved, the delay of the invoices to be received and paid would be much more covered. "

In Chile, SMEs generate between 70% and 80% of jobsThe few regulations in the payment to their customers, which are mainly large companies, make financial stability difficult at the end of the month.

Patricio Gana, AK Contadores' main partner, commented that, if the SME deadline is met, "the benefits would be many, there would be less interest on credit lines, factoring, less bank loans, more money for investment and even may have a (limited) impact on unemployment. "However, he noted that such a discussion is part of the negotiations. "Being goal oriented, eIt is too abrupt a change to leave within 30 days. I believe that a healthy solution is to leave the 60-day period two years and then bring it back to 30. In this way, companies are preparing a culture in the business environment, "he said.

For the dispute of the project, experts state that this law would increase the valorisation of the companies by 30%. The director of Inversión Fácil does not know if this will be the indicated percentage, but that it would increase the valuation. "By paying the most important suppliers at 30 days, it implies less external fundingbetter financial results for non-payment of interest, and that income saved by interest goes directly to the company's profits, which clearly improves the value of the company, "he explained.

On the other hand, Gana took the view that the main issue of disagreement is the abolition of the VAT tax credit for which the invoices are not paid. "I think the Asech should work on a solution to this problem in order to achieve the objectives that I believe would make a leap in competitiveness very important."

Other news
Sponsored content

Source link

Leave a Reply