Slow Receivables Plague Companies
Accounts receivable are taking longer to collect, especially at small companies, reports Coopers & Lybrand. Twenty-eight percent of 362 CEOs of companies with a median of $7 million in sales and 58 employees surveyed found that the average payment period was a troubling 47 days, forcing businesses to take defensive measures to protect cash flow.
Companies by number of employees
|Fewer than 100||100 or more|
|Have you recently experienced a collection slowdown?|
|How have you responded?|
|Increased bank savings||33||42|
|Stretched out payments to suppliers||21||19|
|Increased credit availability||22||33|
Source: Coopers and Lybrand, "Trendsetter Barometer," New York City, March 1992.