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Mr Moss

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Submitted By mossgrills
Words 578
Pages 3
Journal Report

Subject: Crisis in Recession for Small Business

Companies reeling from stalled sales and tightened credit face formidable threats: The reason.
This article talks about how a company had to shut its company down after the great recession, which there revenue from homeowners dropped by more than half in 2009. Owner Drew Davies shut the East Greenwich (R.I.) company after 26 years, because he was unable to pay bills. M&J was a casualty of a cash-flow crisis precipitated by his bank and trading partners who, Davies says, abandoned payment agreements that had been in place for decades.
The article illistrates that some companies get squeezed the hardest with least barganing powers longer some smaller businesses face what some say has become a permanent legacy of the recession: The slowdown of currency, of money, the exchange, put us in a very precarious position," says Davies, 50.
The article talked about how Mr Davis company was effected due to the average time companies took to collect accounts receivable increased to about 27 days in 2010 from about 23 days. They talked about how how a company Sageworks a software maker, which collects and analyzes financial statements from thousands of private companies. The average payment times jumped to about 24 days, up from 20 or 21. They also mentioned how larger companies corporation even take longer to collect. In addition they mentioned that some companies can take up to 59 days on average in the most recent quarter and collected payments in 46 days, according to data compiled by Bloomberg.
Most companies failed behind on terms they agreed on from data from the credit burean showed that in December, 14.3 percent of dollars owed were delinquent, vs. 12.5 percent at the start of 2010. The average time late payers took increased as well, to 6.5 days in December

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