Companies impacted by late payments
More than 50 percent of Australian executives are being negatively affected by late payments, according to a survey by Dun & Bradstreet.
Although payment behaviours saw a slight improvement during the June quarter, Dun & Bradstreet said its latest data equated to a 17 per cent growth in the number of firms adversely impacted by lagging payments since April.
The latest business-to-business payments figures, which cover the more than 9 million current accounts receivable records in the Dun & Bradstreet database, show that Australian companies took an average of 53.4 days to pay during the second quarter.
But despite firms now being four days faster to settle their accounts than during the peak of the global financial crisis, payments go beyond the standard 30-day term by more than three weeks and remain above pre-crisis levels.
Dun & Bradstreet's chief executive Christine Christian said the latest data provides a clear sign that businesses must keep focusing on the fundamentals of cash flow management throughout the global recovery.
"Business-to-business payment data provides a strong indicator of the cash position of firms," said Ms Christian.
"The latest data suggests that the cash position of businesses is strengthening however, Australian executives are indicating that the small improvement in terms experienced during the June quarter is not enough.
"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."