UK businesses have significantly improved the time it takes them to settle their bills, according to the latest Late Payment Index from Experian, the global information services company.
During December 2009, businesses were paying their late bills an average of 20.88 days after agreed terms - an improvement of over two and a half days from 23.54 days in December 2008.
The biggest improvement in payment performance came from large businesses of more than 501 employees, with average late payments of 36.10 days in January 2009 falling to 28.97 days by December 2009.
However, compared to 2008, payment performance in 2009 was marginally worse – increasing from 21.51 days in 2008 to 22.79 days 2009.
“The fact that country’s biggest businesses reduced the time it takes to settle their bills by nearly 20 per cent is a significant turnaround.” said Joe Myers, head of commercial credit at Experian’s business information division.
“Companies are more aware now than ever that their credit score is affected by their payment behaviour. While this enables them to negotiate improved terms as well as raise credit from alternative sources or suppliers, it also means that other businesses can make a more informed decisions about working with them.”
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By Janet Harmer
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