Businesses Taking Longer to Pay Suppliers
Businesses took longer to pay their suppliers in Q3 compared to Q2, according to figures released this week.
Data released by Experian showed that companies were taking on average a day longer to complete payments than they did earlier in the year. The average time for a payment to be received was 26 days after the payment was due.
The data also showed that smaller companies tended to pay more quickly than larger organisations – businesses with more than 500 employees paid an average of just under 35 days late, with small companies of less than 100 employees paying 26 days late.
There was also a regional distribution, with companies in the North West taking almost 18 days longer to settle invoices than those in the South East.
The report has highlighted growing support for a campaign to decrease the time large companies take to pay smaller suppliers – time wasted chasing late payments is thought to cost SME’s an average of 3.4 hours per week.
Suppliers and purchasers have both been advised to keep a close eye on payment performance.