2022 was a rough year for American businesses, plagued by inflation uncertainty, supply chain disruptions, higher operating costs and labor shortages. What’s more, legal filings drained American businesses of over $54 billion, with retailers taking the brunt of it – losing over $10.28 billion alone. Our ‘State of Credit Risk: 2022’ report uncovers these and other findings, including which sectors were the most reliable and ‘creditworthy’ and how well small, mid-market and large companies paid their bills.
Legal filings drained American businesses of over $54 billion.
There were over 2.7 million total legal filings against American businesses in 2022. The top three sectors with the highest number of legal filings were: professional, scientific & technical services, retail and construction – each with over 200,000 legal filings last year.
Retailers were hit the hardest, losing over $10.28 billion alone to legal filings.
Professional services firms followed close behind losing over $9.78 billion, while construction companies came in at a distant, but still notable third spot, losing over $3.37 billion.
Bigger isn’t always better: your biggest customers could be your biggest threat.
Large businesses are the most likely to pay suppliers late, with an average DBT (days beyond terms) of 19 in 2022, compared to small businesses (18) and mid-market businesses (16).
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