New data shows Greater Bendigo businesses are less likely to fail than other regions in Victoria, but the city's chamber of commerce CEO said it may not tell the whole story.
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End-of-year data from CreditorWatch, the agency responsible for the credit files of all commercial Australian businesses, reported businesses in Bendigo and surrounds faired better than most across the country with an average business risk index rating of 79.8.
A rating above 50 was considered "better than average", the report said.
Be.Bendigo CEO Rob Herbert said the city's rating might not be be in line with the experience at ground level.
"If you had that discussion with some in retail and hospitality, they would say that it is a challenge," Mr Herbert said.
"Then there is other industries such as manufacturing and other sectors that have some great opportunities ... so it is a bit of a mixed bag."
Mr Herbert said Bendigo businesses still faced rising costs and shrinking margins in an environment where surveys on business risk could "quickly lose their currency", Mr Herbert said.
"There is still a degree of optimism out there, but people recognise margins are thinning, and it's expensive to do business," he said.
"So they keep working on reviewing their business models to remain viable."
Reforms a 'shot in the arm' for small business
News of the rating comes as the federal government has outlined reforms which would see big business "named and shamed" for failing to pay small Bendigo businesses on time.
It is expected the new policy would improve the rate of late payments to small business, which Mr Herbert said was around 50 per cent of all payments.
"And that is a real cash flow issue for small business," Mr Herbert said.
"And if it is a material component of their business, [late payments] can upset the whole cash cycle and their ability to do other things as part of their business."
Reforms include increased government pressure on big businesses to improve payment times by highlighting best and worst payment performers.
Federal Member for Bendigo Lisa Chesters said the reform was a "shot in the arm" for the city's small business owners.
"Reforms like this will make a big impact on small businesses in central Victoria who have felt taken advantage of by not being paid on time," Ms Chesters said.
Mr Herbert said he was interested to see the effectiveness of the reforms.
"Businesses hold their reputations as paramount to how they operate, so if it is made public that they were traditionally slow payers then that might impact their ability to win contracts," he said.
"So there could be some real material outcomes as part of this."
This reforms are in response to the independent review of the Payment Times Reporting Act 2020.
