A third of UK companies fail unnecessarily

The firm warned businesses to review their collection procedures in order to maintain a 'healthy cashflow and competitive edge'.

According to PwC the sectors with the worst cash management procedures are technology and industrial production, with companies in these industries taking up to 108 days to get paid.

In the struggling telecommunications sector, which has seen the collapse of many global players, including WorldCom and Global Crossing, the difference in receivables is two months between the best and worst performing companies.

Jonathan Sisson, a partner in receivables management at PwC warned: 'Cash is king and companies are diluting their earnings by failing to recognise this. Too many beleaguered companies have damaged their business - often fatally - by failing to manage receivables effectively and promptly.'