Quick. Companies in what state have the best record for paying their suppliers?
Cortera, a company that tracks collections and credit insight, compiled lists of the Top 10 Best States and the Top 10 Worst States based on how well its companies pay their suppliers.
The Top 10 Best States, ranked by percentage of past due accounts receivable are:
4 New Hampshire
6 South Dakota
7 West Virginia
9 North Dakota
The Top 10 Worst States, ranked by percentage of past due accounts receivable are:
Cortera CEO Jim Swift said his company is seeing regional trends in tightening cash flow tracking closely with high unemployment.
“So, it isn’t surprising,” he said, “that six of the 10 worst states have higher unemployment rates than the national average. As companies increasingly turn to their suppliers for working capital needs, the ensuing cash crunch can affect the supplier’s ability to make payroll and ultimately lead to layoffs.”