APRIL 2024 INDUSTRY NEWS AND TRENDS
20% of companies take 90 days to pay suppliers
New research from Allianz reveals that one in five corporate companies take 90 days to pay their suppliers, and it’s having an outsized impact on financial health.
According to survey data, lengthening payment terms spiked working capital requirements to a record high in 2023. Globally, 42% of companies posted payment terms above 60 days of turnover at the end of 2023
The Fed indicates interest rates could come down this year
While Federal Reserve Bank of Boston President Susan Collins indicated that the central bank would not lower rates in the near term, she indicated in subsequent remarks that it would be likely to do so later this year, with around two rate cuts referenced in the quarterly forecast she submitted to the Fed meeting in March.
Chapter 11 bankruptcies jumped 43% YoY in Q1 of 2024
According to data from Epiq Bankruptcy, total commercial Chapter 11 bankruptcy filings jumped 43% in the first quarter compared to Q1 2023, the largest year-over-year increase of any of the major U.S. bankruptcy filing categories.
At the same time, the pace of total bankruptcy filings so far this year show signs of moderating, with overall filings rising 14% year over year (YoY) in Q1 compared to an 18% YoY increase in bankruptcy filings in 2023 versus 2022.
While economic distress among U.S. businesses seems to be leveling off overall, it’s more important than ever for vendors to take steps to follow best practices in credit management to protect against nonpayment.
JPMorgan Chase CEO sounds a negative note on the economy
In a press interview, CEO Jamie Dimon said that the U.S. was looking financially resilient overall, with higher stocks, low unemployment and American consumers with excess savings on hand.
However, he also cited the potential for inflationary pressures and growing geopolitical tensions to impact the economy negatively despite the relative stability of the current economy.
