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The speed at which staffing buyers pay staffing firms slowed slightly in December from the previous month, according to the Capital TempFunds credit index. In December, the index's reading was 113, compared with 116 in November. The higher the index number, the quicker buyers are paying.
A year ago December the index was at 96.
For the full fourth quarter, the index had a reading of 110.
"The quarterly analysis with an index of 110 shows that staffing companies continue to do a good job of collecting and exercising credit policies in this turbulent economy, with fourth quarter 2008 showing the second highest index number since Capital TempFunds began tracking how 14,000 companies pay their staffing company bills," said Jim Rothman, president of Capital TempFunds. "Credit managers are continuing to show caution with credit decisions and reduce terms to customers. Many staffing companies are strengthening collection departments."
Data for the index comes from Capital TempFunds' clients across the country and allows firms to gauge how long their customer base is taking to pay compared with others'. The index has a base line of 100.