Late Payments increased during the early stages of 2017, rising to their highest level since Q3 2014 and consolidating a trend of late payment times gradually moving higher.
Late Payment times rose during the fourth quarter of 2016, marking a fitting end to a year which saw late payment times track a jagged path following two years of sustained falls.
Business is about getting paid in full, on time and maintaining a healthy cash flow. Failing to recognise or act upon these mundane realities can quickly see a dream business turn into a nightmare.
Average business time to pay a bill in Australia is at an historic low - now 44.8 days, but New Zealand businesses pay more quickly with an average of 34.9 days.
The recent trend of increasingly faster payment times stalled during Q2. The result for the three months to June 2016 pushed the national average slightly higher at 44.9 days, still well below the corresponding 2015 result of 49.2 days.
Australian businesses settled their invoices at a record pace for the fourth consecutive quarter with an average rate of 43.7 days for the first three months of 2016.
Westpac Markets Update Sean Callow
Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. © Copyright 2017 Westpac Bank Corporation.