Late payments ease in Q2

Experian research reveals IT firms are settling bills much earlier this year

Paid in full: IT firms are paying their bills faster than this time last year

The UK's late payment crisis showed further signs of easing in the second quarter, with the IT sector making the biggest improvement.

According to global information services company Experian, IT firms paid their bills an average of 14.27 days late during Q2 2010, down from 26.08 days late last year.
On the whole, UK plc is paying up much faster this year than last, said Experian, with both small and large firms showing “significant improvements.”

According to its findings, UK firms paid their bills an average of 20.99 beyond terms during Q2 2010, which is 2.62 days quicker than last year.

Joe Myers, head of commercial credit at Experian, said: “This improvement in cash flow is good news for everyone, especially smaller companies, and better for the economy as a whole."

Channelmoney founder Nitin Joshi said end users have become more punctual with bill payments, but many VARs are still only paying up when pushed.

He said:"End users paying promptly has not been a major problem for many years. The problem is that VARs are cash-strapped and allocate payment to whoever shouts the loudest."