It took an average of 80 days last year for customers to settle invoices, according to a survey carried out by the Malta Association of Credit Management.

This was three days more than the year before and relatively high when compared to the European average, the association said.

The average in other European countries was 60 days for 'business-to-business' transactions, 30 days for 'business-to-customer' trade and 68 days for the public sector.

The association did not provide a breakdown for Malta in its press release.

The figure is known as the Average DSO – ‘days sales outstanding’.

The association represents suppliers selling credit in Malta and other creditors hailing from all sectors of the economy. 

It noted that the aim of good credit management is to contribute directly to profitable sales growth. Therefore, sales and revenue should not suffer at the expense of reducing DSO.