http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_360547.html
Longer wait to get paid
By Elizabeth Wilmot
SMALL and medium-sized enterprises (SMEs) have to wait a longer time to get paid - and it's not just due to the downturn, said business information bureau DP Information Group.
Waiting times have been steadily increasing over recent years, indicating that firms are not being vigilant enough about chasing debts.
DP Information examined fourth quarter results in 2006, 2007 and last year, looking at more than two million payment records from over 80,000 SMEs in seven industry sectors.
It found that the waiting period was 43 days in 2006, 45 days in 2007 and 47 days last year.
'SMEs have allowed the time it takes to collect debts to drift over the last two years,' said DP Information managing director Chen Yew Nah on Monday.
'An increase in payment days is inevitable during the current downturn. But this data shows the delays have occurred during the previous two boom years, indicating SMEs have not been focusing on enforcing their payment terms.
'Now that we are in a recession, it is critical that SMEs focus on prompt debt repayment.'
Ms Chen said the weaker negotiating position of SMEs in dealing with suppliers and clients may be behind the longer waiting times.
Regular customers and those who buy large volumes from SMEs may also be in a stronger negotiating position when it comes to payment terms. Another problem was the tightening of credit facilities in the downturn.
Increased waiting times were seen in all industry sectors except for wholesale commerce and food and beverage (F&B). Both saw declines in payment times.
Ms Chen added that firms can be proactive when it comes to delayed payments.
'This is the time for businesses to put intensive focus on items like accounts receivables and inventory. They have to spend more time with their customers, visit them more often, and ask them to pay up.'
Bosses should also consider joining an SME Credit Bureau. DP Info operates one that collates payment information of companies and businesses and gives members access to the data collected.
Longer wait to get paid
By Elizabeth Wilmot
SMALL and medium-sized enterprises (SMEs) have to wait a longer time to get paid - and it's not just due to the downturn, said business information bureau DP Information Group.
Waiting times have been steadily increasing over recent years, indicating that firms are not being vigilant enough about chasing debts.
DP Information examined fourth quarter results in 2006, 2007 and last year, looking at more than two million payment records from over 80,000 SMEs in seven industry sectors.
It found that the waiting period was 43 days in 2006, 45 days in 2007 and 47 days last year.
'SMEs have allowed the time it takes to collect debts to drift over the last two years,' said DP Information managing director Chen Yew Nah on Monday.
'An increase in payment days is inevitable during the current downturn. But this data shows the delays have occurred during the previous two boom years, indicating SMEs have not been focusing on enforcing their payment terms.
'Now that we are in a recession, it is critical that SMEs focus on prompt debt repayment.'
Ms Chen said the weaker negotiating position of SMEs in dealing with suppliers and clients may be behind the longer waiting times.
Regular customers and those who buy large volumes from SMEs may also be in a stronger negotiating position when it comes to payment terms. Another problem was the tightening of credit facilities in the downturn.
Increased waiting times were seen in all industry sectors except for wholesale commerce and food and beverage (F&B). Both saw declines in payment times.
Ms Chen added that firms can be proactive when it comes to delayed payments.
'This is the time for businesses to put intensive focus on items like accounts receivables and inventory. They have to spend more time with their customers, visit them more often, and ask them to pay up.'
Bosses should also consider joining an SME Credit Bureau. DP Info operates one that collates payment information of companies and businesses and gives members access to the data collected.
