Firms settle bills in quickest time since April ‘08

Businesses improved their late payment performance during October, according to information services company Experian.

Its latest Late Payment Index shows that, on average, businesses took 20.99 days beyond their agreed terms to pay their bills in October, compared to 21.54 days in September and 23.20 days in October last year. October saw businesses settle their bills more quickly than at any time since April 2008.

For the second month running, the biggest month-on-month improvement in late payments came from the largest businesses (falling by 5% to 23.41 days). Overall, though, they still took the longest to pay their bills.

Experian said that the results were “a potential sign of increasing confidence as firms feel less inclined to hoard cash”.