It's taking longer for SMEs to collect debts

It's taking longer for SMEs to collect debts

The time it takes for small and medium enterprises (SMEs) to collect on their debts has hit a two-year high, indicating that it is taking longer for creditors to pay.

The time a company takes to pay its creditor once the debt is due - measured by the The Debts Turned Cash (DTC) National Average - has jumped five points to 46 for the second quarter of this year. It was steady for the past year.

The slowdown in payments are a cause of concern for SMEs, said a spokesman for DP Information Group, which runs the commercial credit bureau that developed the index.

 

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