Small Businesses Paying Bills Later as Credit Crunch Continues to Pinch Cash Flow

“There’s little doubt that a tough lending and credit environment is creating pressure on small business owners to stretch out payments, but it’s a Catch-22. The slowing of payments between businesses is compounding cash flow related stress and causing harm to longer-term credit viability,” said Jim Swift, president and CEO of Cortera. “The best approach to stabilizing the overall credit system for small businesses is to ensure timely payments – to create a ripple effect that will reverse the current trend -- and build an environment where the delinquents are weeded out and the ‘good guys’ can stand together.”

The Cortera SBI tracks late payments against agreed upon terms, measuring late accounts receivable measured in days beyond terms (Average DBT) for businesses with less than 500 employees, comparing this data with equivalent A/R metrics for large companies (greater than 500 employees) and all businesses.

About Cortera

In a sea of business information providers, Cortera is different. With over 15 years of experience serving finance professionals, Cortera combines premium business information and innovative tools with a fresh community approach to commercial credit. It represents the first community for small business credit reporting and a fundamentally new way to capture the collective insight of millions of financial transactions. As a result, small businesses can make smarter, informed decisions to ensure optimal cash flow while attracting more favorable payment terms from existing and potential business partners.

For more information on Cortera, please visit http://www.cortera.com.

VerColen Communications
Craig VerColen, 617-599-2180
craig@vercolen.com
or
Cortera
Alex Coté, 857-403-1370