SINGAPORE - Prompt payments by Singapore companies improved to a one-year high in the third quarter, according to the latest survey by the Singapore Commercial Credit Bureau (SCCB).
The payment performance of local firms improved for the second consecutive quarter following a marked rebound in the April-May period, SCCB said on Thursday (Oct 1).
By the third quarter, prompt payments accounted for more than half of the payment transactions while slow payments accounted for less than two-fifths.
Payment are classified as prompt when at least 90 per cent of total bills are paid within the agreed payment terms while slow payment occurs when more than 50 per cent of total bills are paid later than the agreed credit terms.
On a quarter-on-quarter (q-o-q) basis, prompt payments rose by 2.58 percentage points from 48.47 per cent in the second quarter to 51.05 per cent in the third quarter.
Compared to a year ago, prompt payments climbed markedly by 5.08 percentage points from 45.97 per cent to 51.05 per cent.
The latest figures marks the highest in more than a year since the first quarter of 2014 when prompt payments were 51.92 per cent of total transactions.
Payment performance improved across all sectors of the economy, an improvement over the second quarter when only three of five industries experienced a fall in slow payments.