Research released by Dun & Bradstreet (D&B) has shown that the number of business-to-business debts referred for collection has increased by 20 percent, as firms take action to improve their cash position.
According to Christine Christian, D&B’s CEO, executives are beginning to realise the critical role that the accounts receivable function plays in improving the cash position of their business.
“Executives are seeking to address both current outstanding payments and longer term arrears, which is increasing the level of debt being referred for collection.”
Christian believes that smart firms are realising the benefits of achieving a strong cash position and they have taken action to address poor payment behaviours.
“With close to eighty percent of business failures said to be the result of poor cash flow management, this is a smart move which could be the difference between a business continuing to operate profitably or falling into irreversible financial distress.”
People who read this, also liked:
Stress testing your business to survive tough times
Cash Flow Survival Tips
