Larger Businesses Show Signs of Timely Debt Payments
One sign that the economy might be recovering is the number of businesses that are consistently meeting their obligations in a more timely fashion, according to Experian.
The company's April Business Benchmark Report, released this week, showed that businesses with more than 1,000 employees improved their commercial risk score 13.3% year to date. Construction, utilities, wholesale trade and retail industry group have also experienced slight improvement in their scores, Experian found.
Businesses of all sizes have remained stable in the average percentage of dollars delinquent, with midsize businesses in the 100- to 249-employee range showing a 0.3% improvement year to date. Hospitality, retail and construction, which have struggled during the downturn, have seen the greatest improvements in payment behavior over the last two months, improving by 2.9%, 1.2% and .67%, respectively.
Experian's monthly benchmark report looks at how businesses are faring in the United States through commercial risk scores, days beyond payment terms, percentage of dollars delinquent and percentage of dollars severely delinquent.