Payment delays among Singapore companies drop to three-year low

SINGAPORE: A recent report has revealed that Singaporean companies are increasingly settling their bills on time, with payment delays dropping to a three-year low in the third quarter of 2024.

According to data from Credit Bureau Asia (CBA) Limited, a subsidiary of the Singapore Commercial Credit Bureau (SCCB), the rate of slow payments has decreased to 44.0%.

This marks a decline of 0.07 percentage points (pp) compared to the previous quarter and a more substantial decrease of 0.25 pp year-on-year.

The improved payment landscape is reflected in the rise of prompt payments, which increased by 0.09 pp quarter-on-quarter and by 0.24 pp year-on-year, reaching 41.20% in Q3 2024.

Additionally, the report indicated a slight shift in partial payments, which fell by 0.02 pp sequentially but rose by 0.01 pp year-on-year, now accounting for 14.80% of payments.

Among the five sectors analyzed by CBA, three reported decreased payment delays.

In the retail sector, slow payments fell by 0.03 pp to 43.12%. The services sector saw a decline of 0.23 pp to 42.35%, while the wholesale trade sector recorded a drop of 0.18 pp to 40.10%.

Conversely, the manufacturing and construction sectors experienced an uptick in payment delays.

The manufacturing sector saw slow payments increase by 0.02 pp to 55.26%, while the construction sector’s delays rose by 0.07 pp to 39.15%.

Audrey Chia, CEO of SCCB, noted that the overall enhancement in payment performance signals a more cautious approach among local businesses in managing their cash flow and setting appropriate credit terms.

This trend reflects a growing awareness of the importance of timely payments in fostering financial stability and trust within the business community.

Featured image by Depositphotos (for illustration purposes only)