invoice

Customers took an average of 80 days to settle invoices in 2020, three days more than the year before.

The figures emerge from a survey carried out by the Malta Association of Credit Management, which noted that this was high when compared to the European average.

It said that the Average DSO (Days Sales Outstanding) in other European countries was 60 days for ‘business-to-business’ transactions and 30 days for ‘business-to-customer’ trade, while the public sector took an average of 68 days to settle bills. No breakdown was provided for the local scenario.

It said that the aim of good credit management is to contribute directly to profitable sales growth, and that sales and revenue should not therefore suffer at the expense of reducing DSO.

The Malta Association of Credit Management, known as MACM, is a members-owned not-for-profit organisation providing a central national organisation for the promotion and protection of all credit interests pertaining to Maltese businesses.

Related

Gaming iGaming gambling betting

Malta-headquartered gaming company fined €19.6m by Dutch gambling regulator

March 3, 2024
by Helena Grech

Gammix Limited has strongly refuted the fine, saying it was based on ‘“falsified data, extreme inaccuracy and highly suspect mathematics’

MFSA Company Service Providers reform ‘reduces sector’s risk levels’

March 2, 2024
by BN Writer

As a result of the reform, all professionals and individuals operating as CSPs are now being captured within the MFSA’s ...

Sofia inquiry shows need for construction contractor insurance, say insurance brokers

March 1, 2024
by Robert Fenech

The Association of Insurance Brokers was ‘disappointed’ in the ‘watered down’ legislation for contractors’ licensing