Caixin OnlineFinance & EconomicsTop Stories Finance As Economy Slows, Firms Leave Bills Unpaid
10.25.2012 16:27

As Economy Slows, Firms Leave Bills Unpaid

Coal mining, steel and firms that make machinery feeling the greatest pinch because clients are having a hard time paying
By staff reporter Yu Hairong

(Beijing) – Tight credit and a weak business climate are forcing Chinese companies to neglect their bills, resulting in a surge in many businesses' accounts receivable.

Accounts receivable refers to money owed but not yet collected from a company's clients.

Enterprises are struggling to pay suppliers on time, adding to the financial strain felt by the suppliers, which in turn find it hard or impossible to repay their creditors.

We hope you have enjoyed your free articles for the month
REGISTER to get 5 more free articles, or SUBSCRIBE to get full access to Caixin
Already a subscriber? Log in now
Sign up to receive our free daily newsletter