Holidays pressure small businesses

Research company Dun & Bradstreet Israel said Sunday that 13.7% of companies paid suppliers late in September marking a continuation of the downward trend seen in previous months.

October 9, 2006 08:56
1 minute read.
food biz 88 298

food biz 88 298. (photo credit: Ariel Jerozolimski)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Small businesses, particularly in the tourism industry, are finding it increasingly difficult to pay suppliers on time given increased needs over the holiday period and poor cash flows resulting from the war in Lebanon and limitations on their available credit. Research company Dun & Bradstreet Israel said Sunday that 13.7 percent of companies paid suppliers late in September marking a continuation of the downward trend seen in previous months. In August, 13.33% of companies failed to make their payments on time compared to 12.41% in July and 11.5% in pre-war June. D&B economists singled out the hotel and food industries as being significant contributors to the deterioration. "The worsening of payment reliability in the tourism industry resulted from the freezing of operations of small- and medium-sized businesses in the sector for approximately a month during the war," D&B said. "This closure caused [these businesses] cash hardships and a delay in paying suppliers." D&B added that the holidays also decisively influenced companies' payment reliability for the worse due to the increase in demand for food products causing businesses in the food sector to increase their operations above regular levels, which brought about a deviation from the regular cash flow and a delay in their payments, D&B said. While D&B noted that the holiday period was traditionally associated with the negative payment trend businesses this year also were still contending with the limitations of their overdraft facilities introduced by the Bank of Israel in July as well as the war. "This amendment interrupted the stable trend in payments and increased the number of businesses that were delaying their settlements," D&B said. Meanwhile, a survey carried out by the Israel Small and Medium Enterprises Authority, via research company Teleseker, showed that approximately one-third of small businesses had applied for bank loans in recent months. Around half of those, it said, had difficulty in receiving the loan. The survey noted that the banking system was not able to satisfy all loan requests and the data showed it was helping those small businesses that were seeking assistance to expand their businesses rather than those needing the financing to provide their basic services.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection