QUINCY, Mass. AND BOCA RATON, Fla. – November 3, 2009 — Cortera™, a community-driven business information company, announced the publication of its October 2009 Supply Chain Index (SCI) report, a monthly index of accounts receivable (A/R) activities covering manufacturers, distributors & wholesalers, retailers, services, and transportation companies.  Measuring payment activities of approximately 350,000 businesses, the October SCI indicated the slowing of payments and related cash flow throughout the overall supply chain, reversing four consecutive months of improving conditions.  While the exact cause of the shift remains in question, it could represent an early arrival of a similar seasonal pattern seen over the past couple of years (2007 and 2008), as manufacturers, suppliers and retailers take on additional trade credit related debt in advance of the critical holiday shopping season.  Overall, the index remains 40 percent higher than pre-recession levels.

“An abrupt slowing of payments and cash flow throughout the supply chain typically indicates a waning confidence in sales.   But we’ve seen similar spikes occur in the past, as supply chain stakeholders make significant upfront investments in preparation for the holiday shopping season,” said Jim Swift, president and CEO, Cortera.  “What makes this one potentially puzzling is the timing.  We’re either looking at the impact of businesses stretching out such debt over a longer period of time or confidence in the strength of a recovery  has dropped over the past month.”

The Cortera SCI tracks late payments against agreed upon terms, measuring late accounts receivable (Late A/R), excessively late accounts receivable (Late A/R >30 days), and overall average days beyond terms (Average DBT).  A two year view of this data is available on Cortera’s website.   The Cortera SCI report is published monthly.

About Cortera

In a sea of business information providers, Cortera is different. With over 15 years of experience serving finance professionals, Cortera combines premium business information and innovative tools with a fresh community approach to commercial credit.  It represents the first community for small business credit reporting and a fundamentally new way to capture the collective insight of millions of financial transactions. As a result, small businesses can make smarter, informed decisions to ensure optimal cash flow while attracting more favorable payment terms from existing and potential business partners.

Media Contacts:

Craig VerColen
VerColen Communications
craig@vercolen.com
617-599-2180

Alex Coté
Cortera
857-403-1370

KARR CATERING & PARTY SUPPLY, HOUSTON (TX) – 5 stars

CATSEYE PEST CONTROL, CASTLETON ON HUDSON (NY) – 1 star

SIERRA TOWERS CONDOMINIUM ASSOCIATION, WEST HOLLYWOOD (CA) – 1star

DST TRANSPORTATION, OAKWOOD (GA) – 1star

DOOK TIRE LLC, OMRO (WI) – 5 stars

MORRIS SOUTHARD TRUCKING INC, TIPTON (IN) – 1 star

SOUTHEASTERN PAPER GROUP, SPARTANBURG (SC) – 1 star

PALM AEROSPACE, FORT MYERS (FL) – 1star

DYNASTY PROPERTIES INC, ELKHART (IN) – 1star

ADVANCED CIVIL DESIGN INC, COLUMBUS (OH) – 1 star

RB ELECTRIC INC, PHOENIX (AZ) – 1star

SOLID PRODUCTS, SCOTTSDALE (AZ) – 2 stars

BBQ HUT, PHOENIX (AZ) – 2 stars

DIGITAL COMMUNICATIONS INC, ROCHESTER (MN) – 1star

BZB EXPRESS, SAN JOSE (CA) – 5 stars

COMBINED DEVELOPMENT INC, HINSDALE (IL) – 1 star

SUNSHINE INTERIORS, HERMOSA BEACH (CA) – 1 star

ON TIME PROMOTIONS, MORTON GROVE (IL) – 1 star

CIRCUS MEDIA LLC, PORTSMOUTH (NH) – 2 stars

DIAMOND DISTRIBUTION, FULLERTON (CA) – 1 star

ADVANCED LIFT MOTORS, WHITTIER (CA) – 5 stars

ELITE EQUIPMENT, BELLFLOWER (CA) – 5 stars

VONS CO INC, SANTA FE SPRINGS (CA) – 5 stars

ZORCH INTERNATIONAL INC, CHICAGO (IL) – 1star

ADVANTAGE MARINE INC, CRAWFORDVILLE (FL) – 2 stars

PENNYWORTH HOMES INC, THOMASVILLE (GA) – 2 stars

FUN CITY POOLS & SPAS, CHARLOTTE (NC) – 1star

FLOWCOR INC, BOULDER CITY (NV) – 2 stars

UNDERGROUND BORING, MURRELLS INLET (SC) – 1star

B & R INDUSTRIES INC, POMPANO BEACH (FL) – 2 stars

LOCKHEED MARTIN TSS, SPRINGFIELD (VA) – 1star

DE MICH CONCRETE CO, REDONDO BEACH (CA) – 1 star

MATERIAL HANDLING SUPPLY, SANTA FE SPRINGS (CA) – 1 star

SKARE LAW OFFICE, CLOQUET (MN) – 5 stars

BLUE RIBBON BLOSSOMS LLC, MIAMI (FL) – 5 stars

IKEA WHOLESALE INC, LEBEC (CA) – 5 stars

MDF NATIONAL TALENT, BELLEVUE (WA) – 1 star

MEDICI & SCIACCA PC, JOHNSTON (RI) – 5 stars

IN HOME MEDICAL & RESP, FEASTERVILLE TREVOSE (PA) – 1 star

MAGIC MOBILITY INC, DELRAY BEACH (FL) – 1 star

BAYSTATE SECURITY & PATROL INC, QUINCY (MA) – 5 stars

RADS CYCLE LTD, TAMPA (FL) – 5 stars

LINCARE INC, INDIANAPOLIS (IN) – 1 star

SOURCE INTERNATIONAL, HOUMA (LA) – 1 star

CONQUEST ENGINEERING INC, DORAL (FL) – 2 stars

MR UNDERGROUND INC, SAINT CLOUD (FL) – 1 stars

WASATCH MOUNTAIN EXCAVATING, NORTH SALT LAKE (UT) – 2 stars

BAYTEX CONSTRUCTION, FOSTER CITY (CA) – 1 stars

A DAY TO REMEMBER INVITATIONS, GRETNA (LA) – 1 stars

ALL PRO GLASS & MIRROR INCNEW ORLEANS (LA) – 1star

AMERICAN ENGINE INSTALLATIONSIRVING (TX) – 1star

SOUTHLAND FINANCIAL SERVICES INCSOUTH CHICAGO HEIGHTS (IL) – 1star

WORX PERFORMANCE GLOVES INCVAN NUYS (CA) – 4 stars

METRO ENGINEERING INCOMAHA (NE) – 1star

VERNIER C R INCBELLEVILLE (IL) – 1star

UNITED MECHANICAL SERVICESEFLAND (NC) – 1star

PRIORITY AIR CONDITIONINGWESLEY CHAPEL (FL) – 2 stars

GOVAN MARINE CO INCPOMPANO BEACH (FL) – 1star

STONEWALL CUSTOM HOMEBUILDERS LCHELOTES (TX) – 1star

BARATTA CONSTRUCTIONBAYPORT (NY) – 2 stars

CLEARWATER GROUP LTDRALEIGH (NC) – 2 stars

DA MARTIN ROOFING & SHEET METARLINGTON HEIGHTS (IL) – 2 stars

GOLDSTAR HOME IMPROVEMENTSMANORVILLE (NY) – 2 stars

ROOFING CONCEPTSCLAIRTON (PA) – 2 stars

STONECRAFTERS ARCHITECTURAL PRECAST STONCLEARWATER (FL) – 2 stars

INTERCON SYSTEMS INCGOODLETTSVILLE (TN) – 2 stars

CONSTRUCTIVE INNOVATIONS INCDECATUR (GA) – 1star

ASSOCIATED ELECTRICAL SERVICES INCPOMPANO BEACH (FL) – 1star

GEORGIA WESTERN INCKENNESAW (GA) – 2 stars

PRESTIGE STONE FABRICATIONSHARDEEVILLE (SC) – 2 stars

WILLIAMS BROTHERS PLUMBING CO LTDBELLBROOK (OH) – 1star

PROFESSIONAL CHOICE HOME HEALTHAUBURN (WA) – 2 stars

SOUTHERN HEALTHCAREDELRAY BEACH (FL) – 1star

COLLENE CONCRETE INCKANSAS CITY (KS) – 2 stars

SAMANO STEEL INCSYLMAR (CA) – 1star

PADILLA & SONS WLOCKPORT (IL) – 4 stars

DAYTONA SUPPLY CODAYTONA BEACH (FL) – 2 stars

BOX EXPRESSSAN DIEGO (CA) – 1star

USA COURIERS INCBOSTON (MA) – 1star

PARK CENTER PLUMBINGBOISE (ID) – 1star

PROFESSIONAL ORDERING SYSTEMS INCCOLUMBIA (MO) – 1star

CLASSIC AT PRESERVE THESAINT PAUL (MN) – 1star

JB CUTTING INCMOUNT CLEMENS (MI) – 5 stars

D SQUARED CONSTRUCTION INCTROY (MI) – 2 stars

NATIONWIDE RAIL SERVICESLEMONT (IL) – 1star

JART AIR EXPRESSCOLUMBUS (OH) – 1star

INNOVATIVE CASINO PRODUCTSTRAVERSE CITY (MI) – 2 stars

TYSON FOODS INCSPRINGDALE (AR) – 4 stars

DAMON PURSELL CONSTRUCTIONPLEASANT VALLEY (MO) – 2 stars

CENTURY TRANSPORTATION INCMELVINDALE (MI) – 1star

P & M INDUSTRIES INCTHOROFARE (NJ) – 1star

PAULS DELIVERY SERVICE INCHOUSTON (TX) – 1star

QUINCY, Mass. AND BOCA RATON, Fla. – October 28, 2009 — Cortera™, a community-driven business information company, today published its October 2009 Cortera’s High Risk Debt Report, a monthly index of current accounts receivable debt and high risk 90-plus days past due debt. The report reveals that while national (US) corporate A/R debt trends are slowly improving, the percentage of companies paying bills 90 or more days past due continues to rise. Based on the payment activities of approximately 20 million public and private business locations ($150 billion in commercial A/R information), 83 percent of today’s total A/R debt is current – bills paid on time — up from a low of 81 percent in February 2009. In contrast, the percentage of A/R debt that is 90 or more days past due has grown from 4.9 percent in January to 5.7 percent today.

“Even when the economy was at its worst, the vast majority of companies continued to pay their bills on time, and that number continues to get better as the seeds of recovery take root,” said Jim Swift, president and CEO of Cortera. “Unfortunately, there is a delinquent minority – the proverbial deadbeats – that seem to be getting worse, and that could put near-term business expansion and job creation efforts at risk.”

The report is the latest in Cortera’s A/R data series and is available on the Cortera’s blog.

About Cortera
In a sea of business information providers, Cortera is different. With over 15 years of experience serving finance professionals, Cortera combines premium business information and innovative tools with a fresh community approach to commercial credit. It represents the first community for small business credit reporting and a fundamentally new way to capture the collective insight of millions of financial transactions. As a result, small businesses can make smarter, informed decisions to ensure optimal cash flow while attracting more favorable payment terms from existing and potential business partners.

Media Contacts:

Craig VerColen
VerColen Communications
craig@vercolen.com
617-599-2180

Alex Coté
Cortera
857-403-1370

The U.S. economy is plodding forward to more solid ground. The stock market topped 10,000 before receding back. Retail sales have continued to show gains. And though the unemployment rate is still increasing, pushing its way toward double digits, the pace has slowed noticeably. It has been a time to let some of the unease felt about the financial future of the nation to relax.

But, even though there has been plenty to be optimistic about, there has been a nagging gap in recovery between large U.S. businesses and their small- and medium-sized counterparts, as evidenced by payments trends.

When looking at the payment activities of approximately 260,000 small businesses, Cortera Inc., in its September 2009 Small Business Index (SBI), found that there is a widening disparity between the payment behaviors of large and small enterprises. According to the September SBI, small businesses are paying invoices 25% slower than a year ago and are paying at a rate 20% slower than the overall business average.

Prior to the recession, small and large businesses were paying at approximately the same rate. Now, the nation’s small businesses have a days-beyond-terms (DBT) rate 55% higher. What’s weighing more on small businesses is that larger companies have stepped up their collection initiatives against smaller companies, while at the same time, have pulled back on paying invoices.

Read more on NACM.org

Small business owners may see their credit scores drop as Capital One Small Business credit cards begin appearing on their personal credit reports. This change has me shaking my head — what are they thinking?

Quick background: Small business credit cards traditionally do not appear on personal credit reports unless the business owner defaults. This can be a big plus if the business is carrying high balances or using the card heavily to maximize rewards.

As regular readers of Creditbloggers know, carrying a balance on a card can hurt your “utilization ratio” – the amount of debt you carry in relation to your available credit line. It’s an important part of your credit score. The ideal utilization ratio is around 10 percent or less, according to my colleague John Ulzheimer. Even if you pay your balances off in full, if you use a card heavily, you can get dinged for this factor since the credit report simply lists the balance at the time the lender reports.

For years, Capital One did not report small business accounts on the owners’ personal credit reports. Personally, I think that’s the way it should be. If you truly have a separate business, and it pays its debts, then those accounts should remain with the business. If you default, then the personal guarantee kicks in, and it will be reported. I am okay with that.

This Cortera blog post does a good job detailing how hard the credit crisis is hurting small business owners right now. Capital and credit are hard to come by, and if this change lowers entrepreneur’s personal credit scores it will only make things worse. I’ve outlined some steps Capital One Small Business cardholders can take on the blog I write for AllBusiness.com.

Read more on CreditBloggers.com

Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com, Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of a new ebook, Business Credit Success: Get on the Financing Fast Track.

When 30 days become 45, then 60 and eventually 90, small-business owners face a harsh choice. They can press aggressively for payment of delinquent bills, knowing they’ll likely lose precious customers. Or they can write off bad debts until they become crippling.

It’s an increasingly common dilemma in the recession. Some local entrepreneurs have turned in frustration to the courts for resolution of payment disputes, with decidedly mixed results.

Meanwhile, others are enjoying success through pre-emptive efforts to communicate with their customers before bills become past due. Gentle reminders don’t always work. But ignoring the problem never does.

“What we coach our clients to do, and what we help them do, is make the call caring, empathetic and understanding,” said Bob Compton, CEO of Indianapolis- based automatic voice messaging firm Vontoo Inc. “Because a collection call that hammers someone in this economy is not going to get you anywhere.”

Slow bill payment is a growing national problem in the recession. Small businesses are paying their invoices 25-percent slower than a year ago, and 20-percent slower than the overall business average. That’s according to a report released this month by Quincy, Mass., business analytics firm Cortera Inc. The report was based on a survey of 260,000 companies with 500 employees or fewer.

Before the recession, small businesses paid their bills about as quickly as big businesses did, Cortera found. But small businesses now have a 55-percent higher rate of overdue bills than their larger counterparts.

Read more on IBJ.com

Small-business owners are in a Catch 22. Obtaining financing for their companies can be difficult without a strong business credit history. At the same time, banks and credit-card issuers have tightened standards and don’t want to risk providing loans or lines of credit to small companies that don’t have proven track records.

The solution, business-credit experts say, is for would-be borrowers to buckle down, keep airtight records and instill new credit-building practices. Keep in mind, that’s an ongoing process and requires some vigilance. But the good news? “You can build solid business credit in as little as a year or two, depending on how proactive you are,” says Gerri Detweiler, personal finance adviser for Credit.com and co-author of “Business Credit Success.”

Read More on WSJ.com

One of the greatest problems that small businesses and new startups face is credit. Not only their own credit worthiness, but the credit they must extend to their service partners and other businesses they deal with. Few startups or small businesses have gone through life without getting stiffed at least once after completing their half of the bargain.

Chasing another business through court is an expensive, time-consuming and often fruitless process. Cortera.com hopes to cut down on those renege situations by supplying small businesses with Dunn and Bradstreet-style ratings based on the feedback that other businesses give in the community.

Think of it as the Better Business Bureau meets Facebook. Basically, business profiles are created by and reviewed by members of the Cortera community (other businesses) and reviews culminate into total rating scores.

Read more on Rev2.org