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

Corradino accident

Accidents like Corradino factory collapse will continue repelling locals from a career in construction

December 5, 2022
by Arnas Lasys

Fewer than 15 per cent of workers have acquired the construction industry skills card

ME, Chamber of Engineers collaborate to highlight new career opportunities

December 5, 2022
by BN Writer

Through this collaboration engineering professionals will be exposed to opportunities that can augment their careers in industrial segments

EU Governments approve $60 Russian oil price cap per barrel

December 5, 2022
by Arnas Lasys

Malta, Greece and Cyprus were pushing for $70 (€57) to safeguard their shipping sectors