Dun & Bradstreet’s (D&B) latest quarterly trade payment analysis revealed that Australian companies have improved their payment terms for the first time in many months, with payment days reduced by 2.6 days to reach an average of 54.8 days.
Despite the improvement across all sectors, business-to-business payments still remain significantly above the standard 30 day term.
The research found big business were the worst payers averaging 59.5 days. Smaller companies with 6-19 employees were the quickest paying group. When broken down by state, New South Wales was the slowest to pay and Tasmania, the fastest.
D&B CEO, Christine Christian said strong cash flow is a critical factor for any business to ensure sustained economic improvement and growth.
Christian added that the pressure on payment terms and cash flow could lead to a “reduced focus on business development and investment”, meaning Australia’s economic growth will continue to come under pressure.
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