Matt Carr, NACM
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.
"Cortera gives our analysts powerful tools to minimize bad debt and identify previously lost revenue opportunities."
"Cortera allows us to manage our global account base on one platform, and frees us from the inconsistencies inherent in managing credit in a decentralized, paper-based environment."
