By Chris Crum, SmallBusinessNewz
Report Finds Small Businesses Paying Bills at Faster Rate
Business credit bureau Cortera has shared some interesting findings from its November 2009 Small Business Index (SBI) report. The report is a monthly index of accounts receivable (A/R) activities covering businesses with less than 500 employees (the SBA’s definition of a small business).
Cortera measured the payment activities of over 200,000 small businesses, and found that small businesses have been speeding payments to their vendors, suppliers and other business partners over the past month. The firm says such payment behavior is a primary factor in establishing favorable credit ratings, which are essential for securing loans from lenders and optimal terms with suppliers.
The report also found that the gap between big businesses and small businesses shrank significantly, with the average days beyond terms (DBT) for small businesses only 15 percent higher than their larger counterparts (businesses with over 500 employees). In the previous month’s report, the average small business DBT was 38 percent higher than big business DBT, which has returned to pre-recession levels.
"Cortera is one of the true innovators in our market. We've worked with them for years and I have only great things to say. Their new community approach to credit reporting is yet another example of their industry leadership."
"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."
