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Companies Play Credit Catch-Up

Credit managers see a positive sign of economic growth as their customers begin to pay off their overdue balances.

November 3, 2009

It's payback time. After months of stretching out their payables, companies are starting to catch up on their debt with their suppliers, according to the National Association of Credit Management.

In turn, trade creditors have begun to see improvements in their collections during the past two months. Chris Kuehl, the NACM's economic analyst, says this change is likely coming from companies preparing to grow their business once again and knowing they will need more credit from their suppliers in the future. It's a trend that has occurred during previous recessions, he tells CFO.com. Read more...

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