SINGAPORE (Apr 6): As the Covid-19 pandemic leaves local companies struggling to maintain their cash flow, payment performance for Singapore firms plunged to a new three-year low for the first quarter of 2020.
According to data from the Singapore Commercial Credit Bureau, overall prompt payments dropped by 3.03 percentage points (ppt) quarter-to-quarter from 46.23% in 4Q2019 to 43.20% in 1Q2020. Year-on-year, prompt payment numbers crashed 8.5ppt from 51.70% in 1Q2019.
This is the lowest rate of prompt payment since 3Q2016, when Singapore recorded 42.18% in prompt payments. The all-time low for the decade occurred in 1Q2015, with only 39.04% of creditors paying up on time.