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Late payment epidemic - could the worst be over?

Published on Nov 30, 2009 |

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Another sign that the worst of the recession may be over has come in the form of a marked reduction in the average time businesses are made to wait until their invoices are settled.

According the the latest Late Payment Index from Experian, October 2009 saw UK businesses settle their bills in the quickest time since April 2008.

Businesses tool 20.99 days beyond their agreed payment dates to settle their bills during October, compared to 23.20 days one year ago.

In the contracting world, limited company contractors who work direct for clients are potentially at most risk from late paying clients, although contractors working via agencies may also suffer late payment problems on occasion.

The late payment problem varies greatly across the country, and across industry sectors.

The worst region for late payers is the North West at 24.68 days late, the best are the South West and South East at 16.39 and 16.95 days respectively.

The worst paying industries include Property (33.18 days), and Telecoms (33.39 days), with 'IT' coming in at a healthier average 16.58 days.

Further information

Find out more about how contractors can stay on top of late payment problems - from finding out the correct contact in your client's accounts department to chase up, to calling in a debt recovery specialist as a last resort.