|
News Index
Next
Previous
The rate of insolvencies in the automotive sector fell from 0.13% in February
2009 to 0.09% in February 2010, according to the latest Insolvency & Late
Payment indices from Experian.
Payment performance amongst automotive businesses, itself an indicator of
business confidence, improved significantly in February.
In addition, automotive businesses have managed to shave two days off the time
taken to settle late bill over the last 12 months, from 16.56 days beyond agreed
terms down to 14.57 days, meaning the sector has moved from being the fourth
quickest industry to settle its late bills to being the third quickest, slower
only than the agriculture/forestry/fishing sector and the oil sector.
The financial strength of the automotive industry also saw improvement
year-on-year, going up to 79.95 from 79.10 in February 2009, and month-on-month,
from 79.91 in January 2010.
In the past, this time of year has seen a pick up in sales following the
December lull.
In the current climate dealers need to continue to maximise sales opportunities,
stay within payment terms and manage their exposure to risk.
In good times and bad, maintaining a good business credit score and a low risk
profile will be the factors that help dealers retain their business
relationships and lines of credit.
Mark Nuttall, General Manager of automotive business at Experian, commented: "The
improvement in payment performance in February, along with the year-on-year fall
in the insolvency rate has meant that the financial strength score of the
industry has remained buoyant this month."
Source:
RedAlert
|
