Q3 2010 sees year-on-year improvement in the time it takes companies to pay bills

Q3 2010 sees year-on-year improvement in the time it takes companies to pay bills

Nottingham, 5 November 2010 — The Late Payment Index from Experian^®, the global information services company, shows that payment performance among UK businesses improved during  Q3 2010 compared to the same period in 2009.

Experian’s analysis shows that during Q3 2010 businesses paid their bills an average of 22.61 days late, half a day quicker than the average of 23.17 days in Q3 2009.

Joe Myers, Head of Commercial Credit at Experian, said: “Payment performance is marginally better than it was this time last year. News that the EU Parliament has approved a 30-day deadline for businesses to be paid may encourage organisations to take a closer look at their payment performance.  Payment performance information is a great indicator of a company’s financial health and all businesses should ensure they have a view of their customers’ payment track records to help manage cash flow and assess credit risk.”

Q3 2010 insights from Experian’s analysis, include:

• In terms of size of business, micro businesses (1 to 2 employees) were the fastest payers in Q3 at 19.43 days on average.
• Although the largest businesses (500 and more employees) continue to be the slowest payers, they led the improvements from Q3 2009 to Q3 2010 – from 39.33 to 35.31 days, over 4 days faster.
• The biggest improvement came from the Spirits, Wine and Tobacco sector, which went from 19.18 to 15.95 days in Q3 2010. 
• Agriculture, Forestry and Fishing trade remained the fastest paying sector. At 9.86 days it was the only industry to pay less than ten days late.
• The Postal and Telecommunications sector is now the slowest, averaging 39.13 days beyond terms - almost 17 days slower than the national average.
• The South West saw the biggest improvement in payment performance since Q3 2009, going from 18.36 to 16.68 days beyond agreed terms on average.
• The three regions to see late payment times worsen year-on-year were Yorkshire (from 23.67 to 24.34), Scotland (from 23.76 to 25.51) and the North West (from 26.43 to 27.15). 

Source: Experian

Source: Experian

Source: Experian

ENDS

Contact:

Natalie Hale 

0115 992 2645/07971 709274

natalie.hale@uk.experian.com

About Experian

Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com.