Late Payments up 10% in FY2018
New Zealand business paid overdue bills later in FY2018, with illion’s Late Payments analysis showing a 10 per cent annual increase to 6.8 days at the end of June 2018. Despite the rise, New Zealand’s figure remains well below the Australian average of 11 days. The current difference between the two countries of 4.2 days is the closest it has ever been, after Australian businesses reduced late payment times by 25 per cent in FY2018.
Higher late payment times fit with the run of mixed news on the economy which has seen the Reserve Bank of New Zealand present a more cautious approach to the interest rate outlook. If late payment times continue to rise, it will likely be a factor working against an increase in the official cash rate and could even open the door for the next move in rates being down.
Stephen Koukoulas, illion Economic Adviser