Two-thirds of Australian businesses are taking longer than the usual 30 day period to pay their bills, says the latest Dun & Bradstreet Trade Payment Analysis report. On average, Australian businesses are taking 53.4 days to make their payments.
A new report by analysts Dun & Bradstreet has found a 23% increase in business failure in 2010. The relative strength of the Australian economy was no match for rising costs and delayed payments, with many businesses folding despite Australia’s success weathering the global financial crisis, in comparison to other nations.
Australian firms took, on average, 51.2 days to settle accounts in Q4 – well above the standard 30 day payment term. Some industries were found to be tardier than others. The electric, gas and sanitary services sector took 60.8 days to settle its accounts in Q4 – more than twice the standard 30 days. The services sector was best in group, settling accounts in just 50.7 days. State by state, Western Australia was the quickest, on average, while the ACT was the slowest.
If only confidence was a tangible commodity, like coal or iPhones or barramundi. Because Australian businesses appear to be investing heavily in it. Confidence about sales, profits and capital investment are heady and strong for the final quarter of 2010, according to Dun & Bradstreet’s latest National Business Expectations Survey. This could indicate a sunny December for Australian business.
According to the latest trade payments analysis by Dun & Bradstreet (D&B), the payment terms of Australian firms have risen for the third consecutive quarter.
According to the latest trade payments analysis by Dun & Bradstreet (D&B), the payment terms of Australian firms have risen for the third consecutive quarter.
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