Singapore Manufacturers Show Biggest Improvement in Bill Payments: Study, Companies and Markets

March 17 Jul 2018 – 4:22 PM

The manufacturing sector has shown the greatest improvement in payment behavior over the last three years. The sector has reduced by 14 days the average time that a company takes to pay a debt – from 42 days in the second quarter of 2016 to 28 days in the second quarter of 2018.

By cons, the average payment time According to DP Information Group's analysis of the quarterly national average "Days Turned Cash" – a measure of how quickly small and medium-sized enterprises (small businesses) have grown from more than 157%, from 14 days in Q2 2016 to 36 days. and medium-sized enterprises) pay their debts – based on payment data from more than 120,000 companies.

James Gothard, General Manager of Credit and Strategy Services, South East Asia, Experian, the parent company of DP info, said The manufacturing sector is recovering, and its good performance is promoting a more positive settlement fast debts.

"Singapore is experiencing a renaissance in the manufacturing sector with double-digit year-on-year growth driven by the biomedical and electronics sectors, manufacturing companies are benefiting from the kind of growth that 39, other sectors can only be envious. "

He added that sustained growth has helped improve cash flow and manufacturers' creditworthiness. With more money in the bank, they settle their debts faster, which also bodes well for their suppliers.

On the other hand, the fate of retail businesses has been different in the last three years. costs associated with the growth of online shopping. These factors have led to thinning margins and cash flow pressures, which is why retailers are increasingly slow to repay the money they owe, a- he said. 2.2 percent in May, and the recently announced government transformation map promises to bring the sector to the cutting edge trade.

"Although they are slower, retail firms have the lowest level of debt, with only six percent of the money still owing unpaid after 90 days. If she is worried about a retail business that owes her money, she should join a credit bureau for SMEs.This way they will receive an early warning if the behavior of payment of the debtor company is deteriorating, "Gotthard added.

Two other sectors also showed improvements in their payment behavior. These are the information and communications sector, which now pays its debts 13 days faster than it was three years ago, and the service sector that pays its debts 12 days faster.