Much of what you’ve suspected is being confirmed as reality:

• Of the small businesses that offer credit, 52% say customers are paying invoices more slowly than they were a year ago, and
• 24% of those same businesses report that they are slower to pay their own creditors.

Of course, these trends have initiated ripple effects through virtually every aspect of conducting business.

Purchasing and Procurement people are more likely than most to feel the squeeze.

According to Decision Analyst’s Small Business Recession Effects survey of companies with less than 100 employees, the good news is that conditions aren’t worse for small businesses.

For example, while 23% of small businesses say there’s not enough credit available for them, there are 77% of small businesses that are comfortable with available credit levels.

Small businesses were asked what steps they plan to take in the next three months to help reduce expenses.

Among the answers:

• Reducing supply orders: 29%
• Holding off on buying equipment: 23%
• Switching to less-expensive suppliers: 20%
• Increasing prices: 17%
• Reducing inventories: 16%