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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