Data reported in the Business Benchmark Report by credit bureau Experian shows that smaller businesses were more likely than their larger counterparts to be severely delinquent in paying their bills in fourth quarter of 2010 .
While non-employer firms have a relatively small share of payment dollars that are 90 or more days late – 5.6% – the share of severely delinquent payment dollars declines with firm size for businesses with employees. As the figure below indicates, the proportion shrinks from 9.8% for businesses with 1 to 4 employees to 1.8% for businesses with 1000 or more workers. The sharpest decline is between businesses with 1-4 employees and those with 100-249 employees. While the share of payment dollars that are severely delinquent continues to decline for businesses with at least 250 employees, the rate of decline is very slight above that firm size.