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At the end of 2009 UK businesses had significantly improved the time it takes
them to settle their bills, according to the
latest Late Payment Index from Experian.
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.
It was only until August 2009 that UK businesses turned their payment
performance around and began to see improvements each
month.
The biggest improvement in payment performance came from the UKs largest
businesses (501+ employees) a reduction of 36.10
days late in January 2009 to 28.97 days by December 2009
However, compared to 2008 payment performance in 2009 was marginally worse, from
21.51 days in 2008 to 22.79 days after
agreed terms in 2009.
Joe Myers, Head of Commercial Credit at Experians Business Information division,
explained: "The fact that countrys biggest
businesses reduced the time it takes to settle their bills by nearly 20% is a
significant turnaround.
"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".
Source: Credit
Control Journal
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