While late B2B payments are common across the United States, Alabama, Florida and Nevada, rank in the top three. These states take an average of 15 days past their due date to settle their invoices, according to a report from creditsafe.
The fastest bill-paying states – Maine, New Hampshire and Oregon – take an average of 4.5 days past their due date to settle invoices.
B2B Payment Trends: What Should Merchants Know?
Creditsafe, the world’s most used supplier of online company credit reports, analyzed payment data for companies in each of the 50 states and tracked the changes from April through September of 2016
“In nearly all of the cases, the average DBT (Days Beyond Terms) for companies in each state has increased, meaning companies are taking longer to pay their suppliers over the course of the year,” Matthew Debbage, CEO of Creditsafe USA and Asia, said in a press release.
Worsening B2B payment experiences for suppliers of U.S. companies may signify cash flow problems for corporate buyers, Debbage goes on to explain.
“Taking longer to pay is a key indicator when analyzing a company’s likelihood of failure,” he explained. “It may reveal insight into the state’s overall financial wellbeing.”
Late payments aren’t just problematic in the U.S., but across the world. And the U.S. hasn’t seen much regulation to combat the issue, which gives alternative lenders the opportunity to offer supplier and invoice financing solutions to corporate borrowers.
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