Australian firms face the prospects of renewed cash flow pressures in the months ahead according to the latest business-to-business trade payments data received by Dun & Bradstreet Australia. The findings reveal that the deterioration of payment days (21 days) in the December 2009 quarter has taken terms to 53.9 days and largely reversed the gains made in the September quarter 2009. See attached chart.
A further deterioration of the size recorded in the December 2009 quarter could put payment days back near the levels experienced during the global financial crisis.
Christine Christian, CEO of D&B Australia believes the latest data is a warning sign for executives not to take their eyes off the fundamentals of liquidity management and business survival. Source: D&B Australia
