Late payment times for Australian businesses dropped to their lowest level on record in the final quarter of 2017, according to the latest illion analysis. The average late payment time for an Australian business was 11.9 days during the December quarter, down 17.5 percent from 14.4 days during the prior corresponding period.
“Each month our trade bureau processes one million lines of data at a match rate of 94 percent and totalling over $10bn of spend. It is the biggest data set of its kind in Australia, and it is also a highly predictive measure for business failure.”
Simon Bligh, illion CEO
“Late payments fell to a fresh record low at the end of 2017, reflecting the more buoyant conditions in the business sector and the favourable cash position of many firms. These favourable finances are being driven by low interest payments as official interest rates remain at record lows. Similarly, record low wages growth is also reducing running costs and boosting cash flows.”
Stephen Koukoulas, illion Economic Adviser