NEW YORK (AP) — Small businesses are getting better at paying their bills despite the sluggish economy.
A study by research firm PayNet shows that the 30-day delinquency rate of small businesses was 1.1 percent in June. That means the amount of money that companies hadn't paid by 30 days after the due date came to about $1 out of $100. That compares with a 4.4 percent rate — or $4.40 per $100 — in May 2009. That was just before the recession officially ended.
The 90-day delinquency rate came to 1.5 percent. It peaked at 4.8 percent in May 2009.
The numbers show that companies are having an easier time managing their cash flow, says William Phelan, the president of PayNet. He says the cautious way that owners have run their companies since the recession — including a reluctance to take on debt — is leaving them with more cash available to pay their bills on time.
PayNet compiled its figures from loan and leasing data reported by lenders in its database.