Businesses Are Paying Debts More Slowly
On average the # days company's need to pay obligations increased by 2 % in July 2010.
Experian's July Business Benchmark Report indicates the U.S. average number of days companies take to pay their bills increased by 2 % in July 2010 vs. June 2010. In contrast with six months ago, the average late payment has jumped by 3.3 %. July indicates the national average dollars delinquent and dollars severely delinquent (91 or more days) are up 6 % and 13 %.
Risk score:
- The average commercial risk score for July was 58.3, up 0.5 % over June's average score of 58.0. The score is essentially unchanged versus six months ago.
- In July, very large company’s (those with more than 1,000 employees) showed an almost 6 % drop in their risk scores versus June, down from 41.6 to 39.3. However, companies continue to demonstrate the greatest overall improvement in risk scores when compared with six months ago, when the average score was 38.2.
Days beyond terms (DBT):
- Very large companies have shown the greatest increase in DBT, increasing by 5.6 % and 4.0 %, respectively, when compared with six months ago. Medium size companies (with 50 to 499 employees) showed the most improvement, lowering DBT in some cases near 6%.
- The largest increase seen in DBT month over month was in the nonemployer category, which increased by 2 % to 5.7 days. The largest improvement in average DBT has seen in the large business category (those with 500 to 999 employees), where DBT improved by 1.6 % to 8.6 days.
- All industry groups have shown an increase in DBT in July compared with June. Manufacturing and Utilities had the biggest increases, rising by 2.5 % and 2.4 %, respectively.
% of dollars delinquent:
- Larger company’s (those with 500 to more than 1,000 employees) and midsize company’s with 100 to 249 employees showed large improvements in % of dollars delinquent when. Midsize company’s with 50 to 99 employees and larger companies with 500 to 999 employees showed significant improvements in % of dollars significantly delinquent, decreasing by 11.8 % and 9.4 %, respectively.