Business debts mount in cash flow crisis
The latest report by credit agency Dun and Bradstreet reveals a 20 percent rise in the number of business-to-business debts passed on to collection agencies.
The substantial increase comes in addition to research suggesting that almost 150,000 businesses are more likely to pay their accounts late, as business-to-business payment days double the standard term.
“There is a real cash flow crisis and it’s clear that the current economic climate has created a number of challenges for businesses,” said Christine Christian, CEO of Dun and Bradstreet.
She suggests that businesses should be more proactive about managing collection to remain ahead of the game: “It’s no surprise that smart businesses have realised the critical role that their receivables play in effectively managing cash flow, so they’re acting to manage their collections accordingly.”
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