Small companies paying up sooner
New research has revealed that small companies across all sectors of the economy are taking on average a week less to pay their invoices - a sign of better payment behaviour.
The average number of days taken for a small company to pay up fell from 25 to 19 days over the past six months, according to an ongoing survey of 1,000 companies, by the Credit Management Research Centre.
The CRMC, a member of the Better Payment Practice Group, also unearthed a decline in the average number of overdue days among companies with revenue in excess of Pounds 10m as well – the period for payment falling from 14 days to 12.3.
Professor Nick Wilson, head of the CRMC said the research had identified ‘positive changes in the payment behaviour of UK business -particularly for small firms’.
But, he added: ‘These improvements in payment culture will only be sustained if businesses continue to improve and adhere to good credit management policies.’