BIIA Informs its User Community!
Proportion of payments severely delinquent jumps 20 percent according to the latest findings of the D&B Australia Trade Payment Analysis March 2011.
Notwithstanding Australias unprecedented mining boom there are problems brewing in the general business community. The D&B March quarter report reveals that average payment terms have risen to 55.6 days, which is the slowest rate of payment in three years and just slightly behind the 2008 figure of 55.9 days. This makes the average payment terms for the March quarter of 2011 the second worst figure since the ten year high of 58.9 days set in 2001.
Smaller businesses have experienced one of the worst deteriorations with average payment terms for firms with 1 – 5 employees jumping more than 5 days between the December quarter of 2010 (51.5 days) and March quarter of 2011 (56.6 days).
Large firms (500+ employees) remain the slowest payers at 58.5 days in the March quarter of 2010. This was up from 55.6 days in the December quarter of 2011.
The Dun & Bradstreet Australia data also reveals that the greatest deterioration in payment terms is occurring at the severely delinquent end of the scale. The number of firms that are now paying their bills at 90+ days overdue has jumped 20 percent while those that pay at 60+ days overdue has leapt 41 percent.
To read the full story click on the attachment: Media release – Trade Payment Analysis – March quarter 2011