Quick Bill Payments Help Credit Ratings
In a possible sign of recovery, small firms in the U.S. seem to be paying their bills faster, a step that may favorably affect their credit ratings.
A November 2009 Small Business Index issued by community-based credit bureau Cortera says the average rate of late payments last month stood at 9.35 days beyond terms, or DBT. That was down from a high in December 2008 of 12.6 DBT. Cortera says this shows that small businesses were paying vendors, suppliers and other business partners faster in November.
Such payment behavior is said to be a primary factor in establishing a favorable credit rating to secure loans from lenders and optimal terms from suppliers.
"I've been a Credit Manager for over 30 years and what Cortera is doing with their credit reporting community is amazing. It's totally revolutionary."
"It is very gratifying when your VP of Finance comes out of his office to congratulate your team on their improved metrics. Our partnership with Cortera has really helped us to achieve these results."
