Small businesses are paying their bills later because credit continues to be tight. The October 2009 Small Business Inde (SBI) report published by Cortera (www.cortera.com), a community-driven business information company, shows that although the rate of late payments is down from its high in December 2008 of 12.6 days beyond terms, it is 28.5% higher than it was in October 2007. It is also 38% higher than the big business average for October 2009 (companies with more than 500 employees).

In stark contrast to small business conditions – and offering further evidence of the unequal rates of recovery – the data reveals that big businesses are now actually, on average, paying their bills faster than they were in same period two years ago before the recession began.

The Cortera SBI tracks late payments against agreed upon terms, measuring late accounts receivable measured in days beyond terms (Average DBT) for businesses with less than 500 employees, comparing this data with equivalent A/R metrics for large companies (greater than 500 employees) and all businesses.