Wednesday, 23 July, 2014

 
Published July 16, 2014
Clearing of debt: Firms take a full week less in Q2
SMEs turn more credit-conscious; severely delinquent debts down sharply
Singarpoecbd1607

The largest improvements were seen in the construction and credit-related industries, which were among the slowest payers last quarter - PHOTO: SPH

COMPANIES are paying their bills faster as small and medium enterprises (SMEs) become more credit-conscious.

Specifically, the Days Turned Cash National Average (DTC), which measures the number of days a company takes to pay its creditor once the debt is due, decreased from 43 days in the first quarter of this year to 36 days in Q2.

This translates into a seven-day improvement in payment speeds.

According to the DP SME Commercial Credit Bureau, this is the first improvement in 18 months. The findings are based on payments made by more than 120,000 corporations and SMEs in Singapore each quarter.