Trade Credit Payment on the Upswing, Retail Strong

Credit2B’s trade credit data indicates that business-to-business credit payment behavior in the US continued to be extremely strong with an improving trend over the second half of 2013.

South Plainfield, NJ, December 20, 2013 – Credit2B, the world’s leading web-based trade credit community providing industry-centric peer-to-peer ratings on common customers, released its Payment Quality Index (or PQI) on how suppliers are getting paid by their customers in the US.

Credit2B’s Cross-Industry PQI trend shows continuous improvements in how buyers are paying their suppliers with an overall PQI of 81.9 in Q3 2013 compared with 80.9 in Q3 2012 and 79.5 in Q3 2011. Additionally, the PQI of 81.9 in Q3 2013 is higher than the Q2 2013 PQI of 81.3. PQI measures the probability that a trade creditor will collect its money within its terms of sale on a scale of 0-100 (100 being perfect), derived from tens of millions of trade receivables experiences of Credit2B’s contributing trade suppliers.

Credit2B also sees early indications for an improvement in Q4 2013 cross-industry PQIs over Q3 2013, despite the very significant uptick in product sales and inventory build up towards year end. “PQI was over 82 in October and November and we expect this to be consistent in December which really means that despite the pressure to get more product to customers, suppliers did not experience a deterioration in payment terms” said Bob Carbonell, Chief Credit Officer of Credit2B and an industry veteran who spent a significant part of his career playing critical roles as an analyst at D&B.

Credit2B’s deep roots in the retail sector (which drives upward of 70% of the overall economic growth in the US), provides further support to underlying strength in different categories of retail. As a case in point, mass merchants, grocery, drugstores, and home improvement all showed a 1-3% payment improvement in their respective month-over-month PQIs from July to November of 2013. Credit2B anticipates these sectors will continue to demonstrate strong payment trends going into Q1 2014. Carbonell highlights that “the only major recent retail setback was discount clothing chain Loehmann’s which filed for bankruptcy protection in earlier this month.” He further commented that this is despite the changes to federal bankruptcy laws and lease requirements that have severely limited a retailer’s ability to work through such events like in the past.

Image: Bob Carbonell

About Credit2B

Using patent-pending technology, Credit2B ( is a platform that empowers organizations and their credit teams to seamlessly exchange trade credit data and share experiences on commons customers. Built as a scalable, cloud-based application, Credit2B today delivers remarkably high quality and timely credit information, including fully-integrated detailed public filing and third party data to create comprehensive business credit reports. Credit2B is simple to join, create connections with peers and access huge amounts of information on common customers through a high-fidelity experience.

For more information about Credit2B’s data insight and credit intelligence contact Bob Carbonell at