news release


 

UK businesses paying one day later than this time last year

Nottingham, 7 August 2013 — The latest late payment data from Experian®, the global information services company, today revealed businesses paid bills on average a day later than last year during the second quarter of this year, at 24.58 days beyond terms from April – June 2013 compared to 23.46 days for the same period in 2012.

When compared to the same quarter last year, the UK’s largest companies (501+ employees) experienced the highest annual increase of over three days from 30.91 in Q2 2012 up to 34.19 in Q2 2013. 

However, the quarterly analysis shows a more stable picture with businesses paying their bills between April and June 2013 marginally faster than the last two consecutive quarters.  This was led by the UK’s smallest businesses, with 1-2 and 3-5 employees.  In Q2 this year, UK firms were paying their overdue invoices 24.58 days after agreed terms, compared to 24.65 days in Q1 and 25.63 days in Q4 last year. 

Max Firth, UK Managing Director for Experian’s Business Information Services division, said: “Between March 2009 and June 2012, the UK’s largest firms saw the biggest improvements in their payment performance – falling by 12 days over this period.  No other size of business saw such levels of improvement.  Although these firms are still paying their suppliers faster than they were in 2009, the slowdown in payment over the past 12 months will be felt by the wider supply chain.

“These firms deal with hundreds of suppliers across multiple sites, numerous departments and hundreds of employees, so bringing their payment performance in line with smaller firms is a real challenge.  Smaller businesses should consider spending time and resources to ensure they get paid on time.”

UK businesses paying one day later table 

UK breakdown
Although payment performance among firms in the North West has worsened since last year - from 28.63 in Q2 2012 to 31.14 Q2 2013 – the more recent picture reveals the region as seeing the biggest quarterly improvement with firms paying their late bills three days earlier compared to the last quarter.  It was one of four areas to experience a quarterly improvement with the others being the East Midlands, West Midlands and Scotland.

UK businesses paying one day later

Industry trends
The UK’s second and third biggest industries both saw a year-on-year improvement with Building and Construction going from 21.35 last year to 21.30 in Q2 201 and Property from 30.11 to 29.64 days this year. Businesses in the Spirits, Wine and Tobacco industries saw the biggest improvement since Q2 2012 with a drop of over five days from 14.77 to 9.70 this year making it the fastest paying industry in the UK. 

UK businesses paying one day later  

ENDS

Contact:
Natalie Fox
PR Manager
T: 44 (0) 115 992 2645 | M: 44 (0) 7971 709274
natalie.fox@experian.com

Managing credit in today's economy can be a real challenge for SMEs. That’s why Experian created Business Express - an advanced new web portal that helps protect businesses from financial risk with easy-to-use online products that help businesses improve cash flow and reduce the risk of bad debt.

About Experian
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 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 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.

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