Nottingham, 29 October 2012 — The latest Late Payment Index from Experian®, the global information services company, today revealed that UK businesses paid their bills nearly 1.3 days earlier in Q3 2012, compared to the same period last year. In July to September this year, firms paid their overdue invoices 24.88 days after agreed terms, compared to 26.17 days during the previous year (Q3 2011).
The Index also reveals that payment performance increased slightly when compared to the previous quarter, from 23.46 days between April – June 2012 to 24.88 days in Q3.
The difference in late payments between the UK’s smallest businesses and the UK’s largest companies has been getting smaller since the final quarter of 2011 - from a difference of nearly 20 days during 2009, down to under 12 days during 2012. This has been led mainly by businesses at the larger end of the scale and remains broadly consistent for Q3 2012.
Max Firth, UK Managing Director for Experian’s Business Information Services division, said: “The figures show that late payments have significantly dropped compared to the same time last year and it’s encouraging to see that the gap between payment performance of the biggest and smallest businesses has continued to close. This is a sign of improved behaviour amongst larger businesses. Understanding how quickly clients are paying their invoices provides firms with an early warning sign of potential issues, so that they can plan for any debt or work with firms that are struggling.
“The Q2 to Q3 change, however, does indicate potential cash flow issues in recent months. For firms trying to keep their books balanced, having a full and early view of the all the factors that could impact their business, whether it is late payment or insolvency, could be difference between staying afloat and going under.”
The latest analysis has been compiled using some of the most comprehensive business data on the market. This data powers BusinessIQ, a new easy-to-use, integrated online platform that enables credit professionals to accurately and efficiently manage its business customers and all the risks and opportunities associated with them - from acquisition stage and throughout the life cycle of the relationship. This includes giving firms an early warning system on customers that might be getting into financial difficulty.
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Mrs Gemma Wright
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Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com