The UKs Smallest Businesses are the model student when it comes to paying on time.
Experian’s quarterly Late Payment Index has highlighted that the UKs smallest businesses are the model student when it comes to paying on time with the UKs largest firms lagging behind.
In comparison with last years Q3 report, the UKs largest companies are taking 3 days longer to pay their outstanding invoices, where the smallest firms with 1-2 employees are paying 20 days beyond terms which is 4 days quicker than the national average and a staggering 15 days ahead of the UKs largest firms with 501+ employees.
The index revealed that UK companies on average pay their overdue invoices 25 days late, which is only a fraction slower than Q3 last year, showing that the economy is stabilising, though Ade Potts, MD for Experian’s small business division warns that we should not be complacent “late payment is creeping up again, especially at the larger end of the business world”
Regionally, the East and West midlands and Eastern England saw an improvement on a quarterly or annual basis. However, the majority of regions saw an increase in delayed payments, with London experiencing the largest increase of 28 days in 2012 to 29 days in 2013.
Out of the five biggest industries in the UK, Property Businesses were the only ones to make improvements to their overdue payments. However exterior to the big five, Tobacco and Wine industries saw a commendable improvement with a reduction of five days.
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