Australians businesses are feeling the pressure of the global economic downturn, with payment terms rising to 57.6 days, according to Dun & Bradstreet’s (D&B’s) latest quarterly trade payment analysis.
The figures reveal a five day increase in terms since September 2007, taking business-to-business payment terms (all industries) to almost double the standard term.
D&B CEO Christine Christian, believes the late payment terms show that Australian business are struggling with cash flow and continuing to feel the pinch of the economic crisis.
“Our findings continue to show that Australian companies are holding on to their cash for longer in an attempt to manage their cash flow and improve liquidity.”
In terms of state breakdown, Victoria came out as the slowest paying state, averaging 59.2 days to settle accounts in the March 2009 quarter, with NSW following close behind at 58.8 days.
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