Survey reveals late payment by large firms increases by 11%.
Late payment by large companies has worsened over the last three months, according to the Institute of Credit Management.
Figures for the last three months show late payment by the large businesses have increased by 11% according to the institute’s latest survey, bringing to an end a period which had seen a distinct improvement in the perception of late payments by large firms.
Deliberate late payment was the most common reason given by suppliers (27%), with many firms believing 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%).
London late payment crisis www.accountancyage.com/Business/1110012.