On average professional fishers pay their bills faster than mining companies

Local businesses operating in regional coastal economies are probably well aware that some industries are slow to pay their debts.

Dun & Bradstreet (D&B) Trade Payments Analysis simply places this phenomenon in a convenient graph.

September Quarter 2012 report

According to Dun & Bradstreet's CEO, Gareth Jones, while payment terms remain significantly above the standard 30 day term, the trend towards lower payment times that has occurred over the past few years indicates that the cash flow position of firms has improved…..
According to Mr Jones, the length of time businesses take to pay their bills has a significant bearing on the broader economy.
"Trade credit makes up a large portion of short-term finance for firms and as a result, it is one of the most important indicators of individual business health as well as overall economic health. Small and medium businesses in particular, are often more reliant on trade credit than bank credit; thus a reduction or increase in payment times can have a significant impact on their cash flow cycle."
A significant number of industries also reduced their payment times, particularly the forestry sector, which cut the time taken to pay their bills by six days to 54.2 days year-on-year; this was followed by firms in the fishing industry (down 2.5 days year-on-year). Fishing firms were also one of the fastest payers at 50.6 days.
The quickest payers were those in the agriculture and transportation industries, recording payment times of 49.3 days and 49.8 days respectively. Both industries improved their payment times by nearly two days each quarter-on-quarter and on par with figures 12 months ago.
Mining companies were the slowest payers at nearly 56 days, representing a marginal increase in the past 12 months, despite accounting for around eight per cent of total GDP. This was followed by firms in the finance, insurance and real estate sector and the electric, gas and sanitary services sector at 54 days each.
"Favourable prices and growing conditions are no doubt behind the lower payment times in agriculture, while lower global mineral prices and slower growth in profits is likely to be dampening the mining sector," Mr Koukoulas says.
"Based on the most recent payments data, no particular sector of the economy is performing poorly which fits with the scenario of the economy evening out in recent quarters."