It has long been the practice of the State of Illinois to string creditors along so as to preserve cash flow.  The practice is so notorious that local clinics often require patients on the state insurance plan to pre-pay, or pay their anticipated deductible or co-pay in advance, and that has become yet another sore point in the tussle between Northern Illinois University and the state over employee compensation and state support, or state micromanagement without support.

Chinese companies are taking a cue from Springfield.
Tight credit and a weak business climate are forcing Chinese companies to neglect their bills, resulting in a surge in many businesses' accounts receivable.

Accounts receivable refers to money owed but not yet collected from a company's clients.

Enterprises are struggling to pay suppliers on time, adding to the financial strain felt by the suppliers, which in turn find it hard or impossible to repay their creditors.
The article notes particular problems in coal, steel, and heavy machinery. Put another way, other developing countries are now stealing the now-routine heavy industry advantage from China.

No comments: