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.
"We rely on Cortera business information to make critical credit & collections decisions every day. We couldn't be happier with the results."
"eCredit by Cortera created efficiencies for Xerox by centralizing credit information, shortening approval cycles and standardizing polices & reporting. The investment in Cortera's eCredit software has significantly improved customer relations & productivity. It's a great fit for our business."
