Small companies may also have been suffering from cash flow constraints. Now, business conditions may be looking just a tad brighter: More small companies are managing to pay their bills off faster than before.
According to Dun & Bradstreet Corp., which tracks payment performance, small and medium-sized companies (those with fewer than 500 employees) are faring somewhat better now than as of September, 1991. But the best payment performance of all is coming from companies with more than 500 employees. As of the first quarter, according to d&b, 4% more companies in this group are paying bills at a faster rate than are paying bills at a slower rate.