Mumbai: Indian companies have establshed a much better record on corporate payments than Chinese businesses, says global credit insurer Coface a subsidiary of French corporate and investment bank Natixis.
Coface recently concluded a survey of corporate credit risk management in China and India and for the year 2009, where it assigned a higher rating to the overall business climate in India than China.
Its ratings for the business climate in India is 'A4' as against 'B' for China.
According to Samuel Jesuratnam, country head, Coface India, ''The survey aims to understand the general status of the credit management and domestic payment experiences of companies based in India''.
The survey, conducted for the first time in India and the sixth time in China, found that while standard payment terms are around 30 days in India, and double as much in China at about 60 days.
The use of open account payment terms, a relatively unknown practice 10 years ago, has now become common practice in both the countries and companis in both countries offer open account sales, though it is higher in India at 72 per cent as against 65 per cent in China.