Businesses, across all industries, are making payments at least four weeks past the standard term.
Private companies are averaging 60.9 days to settle accounts, and public companies are averaging 58 days. Big businesses with more than 500 employees are the worst culprits.
“The impact of the credit crunch on business’ ability to access funds adds another layer of strain to organisations trying to manage their cash flow amidst a significantly delinquent payment environment,” says Christine Christian, CEO of Dun & Bradstreet.
“Delinquent payment cycles are very difficult to break as their impact forces more and more companies to hold onto their cash in an attempt to manage cash flow.
“Liquidity issues in an environment where borrowing continues to be difficult and costly can have dramatic effects on economic development as it often results in the postponement of business investment.”
