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.
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