Big business lags small business payment times globally
By Alexandra Cain
Trade payment data from around the world indicates global economic conditions are improving. But the data also clearly shows small businesses are funding the cash flow of larger companies. This has consequences for the global economy should credit conditions tighten. Here, we explore payment trends around the world, and the potential impact of these trends. First, it’s important to understand Australia’s trade payment times as a benchmark. According to Dun and Bradstreet’s most recent data, the trend for faster payments stalled during the second quarter of 2016. The national average for the time it takes businesses to pay their bills is now sitting at 44.9 days. The 2015 figure was 49.2 days. It’s worth noting the second quarter of this year is the first time payment times have climbed since 2015.