Q1 sees fastest payment rate for invoices

Australian businesses are paying their invoices at the fastest rate on record, according to Dun & Bradstreet's latest trade payments report.

The analysis shows that during the first quarter of 2015, business invoices were settled in an average of 50.4 days. This was down from 56 days a year ago.

Further, 56 per cent of invoices were paid within the standard 30-day period compared to 44 per cent a year ago.

"The lower cost of debt is certainly helping businesses to manage their repayments and control their cash flow in an operating environment of soft demand," said Gareth Jones, CEO of Dun & Bradstreet.

Despite the improvement, 44 per cent of commercial invoices in Australia are still being paid late.

The survey highlighted that 46 per cent of businesses would choose to miss a payment to a trade supplier if without enough money to cover all their expenses.