Supply chain cash flow slows, reversing 4 month trend, according to Cortera`s October 2009 Supply Chain Index
* Reuters is not responsible for the content in this press release.
Shift could reflect early arrival of historic seasonal trend, extension of debt QUINCY, Mass. & BOCA RATON, Fla.--(Business Wire)-- Cortera, a community-driven business information company, announced the publication of its October 2009 Supply Chain Index (SCI) report, a monthly index of accounts receivable (A/R) activities covering manufacturers, distributors & wholesalers, retailers, services, and transportation companies. Measuring payment activities of approximately 350,000 businesses, the October SCI indicated the slowing of payments and related cash flow throughout the overall supply chain, reversing four consecutive months of improving conditions. While the exact cause of the shift remains in question, it could represent an early arrival of a similar seasonal pattern seen over the past couple of years (2007 and 2008), as manufacturers, suppliers and retailers take on additional trade credit related debt in advance of the critical holiday shopping season. Overall, the index remains 40 percent higher than pre-recession levels. "An abrupt slowing of payments and cash flow throughout the supply chain typically indicates a waning confidence in sales. But we`ve seen similar spikes occur in the past, as supply chain stakeholders make significant upfront investments in preparation for the holiday shopping season," said Jim Swift, president and CEO, Cortera. "What makes this one potentially puzzling is the timing. We`re either looking at the impact of businesses stretching out such debt over a longer period of time or confidence in the strength of a recovery has dropped over the past month." The Cortera SCI tracks late payments against agreed upon terms, measuring late accounts receivable (Late A/R), excessively late accounts receivable (Late A/R >30 days), and overall average days beyond terms (Average DBT). A two year view of this data is available on Cortera`s website. The Cortera SCI report is published monthly. About Cortera In a sea of business information providers, Cortera is different. With over 15 years of experience serving finance professionals, Cortera combines premium business information and innovative tools with a fresh community approach to commercial credit. It represents the first community for small business credit reporting and a fundamentally new way to capture the collective insight of millions of financial transactions. As a result, small businesses can make smarter, informed decisions to ensure optimal cash flow while attracting more favorable payment terms from existing and potential business partners. For more information on Cortera, please visit http://www.cortera.com. VerColen Communications Craig VerColen, 617-599-2180 email@example.com or Cortera Alex Coté, 857-403-1370 Copyright Business Wire 2009