PracticeConsultingLate payment problems intensify

Late payment problems intensify

Late payment by large companies has worsened over the last three months, according to the Institute of Credit Management.

It said figures for the last three months show late payment by large businesses had increased by 11%, bringing to an end a period which had seen a distinct improvement in the perception of large firms.

Deliberate delay was the most common reason given by suppliers for businesses paying late (27%), with many firms believing that customers delayed payment to improve their own position. Others stated financing difficulties experienced by customers had an effect on their ability to pay on time.

During the quarter to September 2000, 60% of customers were reported as paying on time, and 30% offered discounts to encourage prompt payment.

On the positive side, the survey showed the main motivations for paying on time included maintaining relationships with particular suppliers (88%), maintaining company reputation (76%) and developing relationships with particular suppliers (76%).

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