Overdue payment numbers down

Australian businesses have reported a significant reduction in overdue payments.

According to Coface's 2014 Asia Pacific Payment Survey, the proportion of Australian companies experiencing overdue payments fell from 85 per cent in 2013 to 74 per cent last year.

The proportion of companies whose average overdue period was more than 90 days fell from 9.5 per cent in 2013 to 7.4 per cent last year.

However, there was a slight increase in credit terms. The proportion of businesses offering credit terms of 60 days or more rose from 5.1 per cent to 5.6 per cent.

Coface said the improving payment experience was in line with the country's insolvency trend. The Australian Financial Security Authority reported a 2.9 per cent fall in insolvency activity last year.