TWO-THIRDS OF BUSINESSES FAIL TO PAY BILLS
Written on the 8 September 2011
THE number of Australian firms paying their bills more than three months late has jumped 20 per cent while two-thirds are taking longer than the standard 30-day period to pay company accounts.
A report by Dun & Bradstreet reveals startling evidence that an increasing number of businesses are feeling the pinch with national payment terms reaching 53.4 days during the June quarter 2011.
While business-to-business payment times improved marginally during the quarter, the latest Dun & Bradstreet Trade Payment Analysis found the number of severely delinquent payments, those 90 days or more overdue, jumped almost 20 per cent compared with the June quarter 2010.
Although both sectors reduced payment terms during the June quarter, the time taken to pay trade accounts remains inflated compared with 2010. Firms in the public sector maintain their status as the country’s slowest payers – taking an average of between an additional three to four days to pay accounts over the last year.