Late payments aren’t just an administrative burden — they’re a silent killer of SMEs.
When South African entrepreneur and Suits & Sneakers founder Mark Sham recently shared a LinkedIn post celebrating payment from a large client after months of delay, it struck a chord. His story, which quickly gained traction, wasn’t just a feel-good moment — it underscored a systemic issue facing small and medium-sized enterprises (SMEs) across South Africa and beyond.
The Real Cost of Delayed Payments
Delayed payments from corporates are not a new problem, nor are they exclusive to South Africa. In a 2021 Guardian article titled “Getting paid by big companies is the worst part about running a small business”, columnist Gene Marks summed it up:
“From the UK to the US – and here in South Africa – small businesses face the same uphill battle. Large corporates drag out payments for 60, 90, even 120 days.”
These lengthy delays place enormous pressure on SME cash flow, leaving many unable to reinvest, grow, or in some cases, survive.
How One Lawyer Helped Level the Playing Field
Thanks to the intervention of Ginen Moodley and his team at Moodley Attorneys, Mark’s case had a positive outcome. A simple but strategic legal letter helped secure the overdue payment — highlighting the power of legal support for small businesses.
“This is a perfect example of two small businesses helping each other out.”
– Mark Sham, Founder of Suits & Sneakers
Why This Problem Persists
- Large companies often hide behind bureaucratic systems and rigid policies.
- Small suppliers fear speaking out due to reputational risk or the loss of future business.
- There’s a lack of enforcement mechanisms to hold big corporates accountable.
While the UK has introduced a Prompt Payment Code, a voluntary framework that encourages payment within 30 days, South Africa still lacks a formalised policy to protect SMEs from late payments.
The Call for Change
Mark’s public stand is part of a broader movement: SMEs leveraging transparency, community support, and legal recourse to demand better treatment.
At Decusatio, we believe it’s time to:
- Empower entrepreneurs with stronger legal frameworks
- Advocate for policy reform, including a South African version of the Prompt Payment Code
- Encourage open dialogue on payment ethics and business integrity
What Can SMEs Do Now?
- Strengthen contracts with clear payment terms and penalties for delays
- Build legal partnerships with firms like Moodley Attorneys
- Speak up – visibility creates accountability
- Join communities like Suits & Sneakers that support SME voices
“Many corporate companies continue to treat small businesses poorly because they never experience the consequences of their actions. Well, no more.”
– Mark Sham
Let’s Shift the Power
Late payments aren’t just poor practice — they’re a serious risk to SME sustainability. It’s time for corporates, regulators, and stakeholders to re-evaluate their role in creating a more ethical business ecosystem.
If you’re an SME owner in South Africa struggling with late payments, it’s time to stop navigating this challenge alone. At Decusatio, we work with partners like Moodley Attorneys to support small businesses with practical solutions — from legal guidance to strategic communications. Contact us today for a consultation and discover how we can help you protect your cash flow, amplify your voice, and hold corporates accountable — one invoice at a time.
Together, let’s create a more ethical and resilient business environment for South Africa’s SME sector.