28 Apr 2010

Firms waiting longer for clients to pay

8:16 pm on 28 April 2010

Businesses are facing renewed cashflow pressures as their clients take longer to pay their bills.

Credit agency Dun and Bradstreet's business-to-business trade payment figures show that firms took on average 46.6 days to pay up in the March quarter - two days longer than in the previous quarter.

Dun and Bradstreet's New Zealand general manager, John Scott, says the deterioration puts the time to pay back near to what it was during the height of the global financial crisis.

He says that late payment could potentially leave companies at a disadvantage as the economy picks up, and that firms not being paid on time may have to take on loans from banks.