Australian businesses settled their invoices at a new record-setting pace of 45.1 days on average in Q3 2015. This compares to 49.2 days in the previous quarter and 51.7 days in the same period last year, as revealed by Dun & Bradstreet’s latest Trade Payments Analysis. The result suggests businesses have exceptionally healthy cash flows as a result of the favourable credit environment, spurred by the Reserve Bank’s October decision to leave the cash rate unchanged at 2.0% for the fifth month in a row.
According to Stephen Koukoulas, Economics Advisor to Dun & Bradstreet, “The spectacular decline in average invoice payment times since the middle of 2014 suggests firms are experiencing favourable cash flows. A combination of savings from record low interest rates, reasonable income growth and on-going economic expansion mean that firms are well placed to pay their bills more quickly than at any time in many years.”
To read the full report click on this link: AU Trade Payments Analysis – Q3 2015
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Source: Dun & Bradstreet Australia