SINGAPORE - Singapore companies were more prompt in paying their bills in the second quarter of this year, after a sharp drop in their payment performance in the first three months of 2016.
Prompt payments accounted for more than two-fifths of all payment transactions in the April-June quarter while slow payments made up slightly less than half, according to the Singapore Commercial Credit Bureau's (SCCB) latest statistics,
They show overall prompt payments rose moderately to 45.92 per cent in the second quarter from 41.11 per cent in the first quarter.
On a year-on-year basis though, prompt payments fell from 48.47 per cent in the second quarter of last year.
The percentage of slow payments also fell, to 42.61 per cent in Q2 from 46.58 per cent in Q1. However, on a y-o-y basis, slow payments inched up slightly from 41.35 per cent in Q2 2015.
SCCB said slow payments have improved across all five industries. This stands in contrast to Q1 2016 when all five industries experienced a deterioration in slow payments.
On a y-o-y basis, payment delays have increased moderately in three of five industries, compared to one of five industries in Q1 2016.
Prompt payment is classified as when at least 90 per cent of total bills are paid within the agreed payment terms, while slow payment is classified as when more than 50 per cent of total bills are paid later than the agreed credit terms.