Businesses still lagging in payments
By
Andrea Cornish
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28/07/2010 5:30:00 AM
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Australian firms are still struggling with cash flow management despite settling accounts four days quicker than during the height of the global financial crisis.
The latest business-to-business payments figures – which examine the more than nine million current accounts receivable records on the Dun & Bradstreet database – reveal that Australian firms took an average of 53.4 days to settle accounts during the June quarter.
While the figure is an improvement, payments still exceed the standard 30-day term by more than three weeks and remain above pre-crisis levels.
According to Christine Christian, Dun & Bradstreet’s chief executive, the latest data indicates the cash position of Australian businesses is strengthening, but more work needs to be done.
“Access to cash is vitally important during a recovery period as firms seek to meet growing demand. Consequently, if we are to experience the significant improvement in terms which is required to positively affect the cash flow of firms, executives need to take prompt action to collect their bills.”
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