Gum In The System

Posted By on January 3, 2010

Later Payments Are Jamming The Economy’s Gears
               January 3, 2010
                        By PHYLLIS KORKKI

What’s one sign of a weak economy? People take longer to pay their bills. As a result, those who await payment have less money to pay their bills, and a cycle of slowness sets in, gumming up the economic works.

An analysis by Sageworks, a financial information company, shows that a range of privately held businesses waited longer for payment last year than in 2008 or 2007.

Legal firms, for example, waited an average of three days longer in 2009 than in 2008 to collect money due. Architectural and engineering companies waited an average of about five days longer. It took accounting tax preparation, bookkeeping and payroll services about 10 days longer to receive their money, along with companies that service buildings and dwellings.

More….http://www.nytimes.com/2010/01/03/business/economy/03count.html?ref=business

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