Retail sector's cash flow tightens as creditors demand prompt payment

Shoppers at The Heeren in Orchard Road, on Nov 28, 2014.
Shoppers at The Heeren in Orchard Road, on Nov 28, 2014. PHOTO: ST FILE

SINGAPORE - Retail companies here are facing tightened cash flow positions, as creditors take steps to protect themselves against possible defaults, said DP Information Group (DP Info), a credit and business information provider on Monday.

DP Info found that retail firms take the least amount of time to settle a bill that is due.

"While this may appear to indicate financial strength, in reality it shows creditors are demanding prompt payment from retail companies," it said.

It found retail small and medium enterprises (SMEs) took just 12 extra days to settle their accounts in the first three months of 2016.

The national average is 29 days, calculated across eight industries.

rachaelb@sph.com.sg