Receivables 2025: Optimising Cash Flow for Australian Businesses

For Australian businesses, receivables aren’t just a line item—they’re the lifeblood that keeps cash flowing and growth steady. In 2025, with ongoing economic shifts and digitisation, managing receivables has become both more complex and more crucial. With new government incentives, the rise of digital platforms, and evolving customer payment behaviours, staying ahead of the receivables game is essential for businesses of all sizes.

Understanding Receivables in 2025: More Than Money Owed

Receivables, or money owed by customers for goods and services delivered, have long been a pillar of business finance. But in today’s economic climate, how you manage those receivables can be the difference between thriving and merely surviving.

• SMEs and Cash Flow: For small and medium-sized enterprises (SMEs), receivables can represent up to 40% of total assets, according to 2025 reports from the Australian Small Business and Family Enterprise Ombudsman.
• Extended Payment Terms: Post-pandemic supply chain adjustments mean many large corporates are requesting longer payment terms—sometimes up to 90 days—putting pressure on suppliers’ working capital.
• Bad Debt Risk: With insolvencies rising in early 2025, the risk of non-payment remains a real concern, prompting businesses to rethink their credit control strategies.

Receivables are no longer just about getting paid; they’re about managing risk, optimising operations, and enabling growth.

Tech Trends: Digital Receivables Management and Invoice Finance

The digitisation of finance has transformed how Australian businesses handle receivables. Here’s what’s new in 2025:

• Automated Invoice Platforms: Platforms like Xero and MYOB now integrate AI-driven invoice tracking, sending automated payment reminders and flagging overdue accounts for faster action.
• Open Banking Integration: With the Consumer Data Right (CDR) fully operational, businesses can connect directly to customer accounts for real-time payment verification and cash flow forecasting.
• Invoice Financing Goes Mainstream: Fintech lenders—including Moula and Prospa—offer streamlined invoice finance, allowing businesses to access up to 90% of receivable value within 24 hours, without traditional collateral requirements.

For example, a Melbourne-based construction supplier recently used invoice financing to bridge a 75-day payment gap from a major client, unlocking $200,000 in working capital and avoiding the need for expensive overdraft facilities.

Policy Updates: What’s New for Receivables in 2025?

Government and regulatory changes in 2025 are reshaping the receivables landscape:

• Payment Times Reporting Act (PTR) Expansion: The federal government expanded the PTR scheme, requiring more large businesses to publicly report their payment times to small suppliers. This transparency pressures corporates to pay faster, or risk reputational damage.
• Tax Incentives for Early Payment: The 2025-26 Federal Budget introduced a temporary tax offset for businesses that pay suppliers within 30 days, aiming to encourage prompt settlements and support SME cash flow.
• Digital Signature Acceptance: New legislation has permanently enshrined the use of digital signatures for business contracts, accelerating invoice approvals and reducing administrative lag.

These policy shifts mean businesses that prioritise receivables management not only improve their cash position but may also access direct financial incentives.

Best Practices: Sharpening Your Receivables Game

To get ahead in 2025, Australian businesses should consider these best practices:

1. Segment Customers by Risk: Use data analytics to identify late payers and offer stricter terms or upfront payment options.
2. Automate Where Possible: Leverage digital tools for invoice delivery, reminders, and reconciliation to reduce manual errors and speed up collections.
3. Consider Invoice Finance: For businesses with seasonal cash flow dips, invoice financing can provide immediate liquidity without taking on new debt.
4. Stay Policy-Savvy: Keep up with government schemes and tax incentives that can improve your receivables position or reward early payments.

Conclusion: Receivables as a Strategic Asset

Receivables management in 2025 is about more than just chasing payments—it’s about using technology, data, and policy incentives to build a stronger, more resilient business. With the right strategies and tools, Australian businesses can transform receivables from a risk into a strategic asset, fuelling growth and stability in a rapidly changing economy.