According to the "Atradius Payment Practices Barometer" survey (http://www.atradius.com) cash flow management remains critical for businesses.
Key U.S. survey findings:
- Approximately 39 percent of American invoices were paid "late"
- Fifty-two percent of U.S. respondents reported customers had asked for extended payment terms over the last six months. Forty-eight percent had delayed payment without prior agreement.
- U.S. respondents' main criteria for selling on credit terms are: "credit check," "track record" and "reputation"
- Average domestic payment term: 28 days Average domestic payment duration: 28 days Average foreign payment term: 36 days Average foreign payment duration: 32 days
- The most likely impact of overdue invoices was the need to "take specific measures to correct cash flow" (43 percent of respondents)
- Thirty-five percent of U.S. respondents who changed their credit management practices during the past year increased their "down/advance payments"
- Average Days Sales Outstanding (DSO) in the U.S. was 61 days. Fifty-nine percent of American respondents experienced no change in DSO during the past year, whereas 12 percent experienced an increase in DSO over the past year