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2011 | Adam Leach
businesses weren’t quite so slow to pay contractors in the second quarter of
2011, according to a report.
Q2 Late Payment Index, conducted by credit check company Experian, found that large businesses
settled outstanding payments an average of 32.9 days after terms compared with
33.98 days in the first quarter of this year (Q1). Standard terms in contracts
call for payment within 30 days.
report found that the speed of handling payments in the North West had slowed
significantly. During the second quarter, payments in the region took an
average of 34.56 days to be settled compared with just 28.85 days during the
Mills, head of payment performance at Experian UK & Ireland, said: “It’s
important to hone in on deterioration in performance because this is what
typically indicates underlying issues within a particular region or sector. The
situation in the North West should be examined over the coming quarter to see
if there is any improvement, or whether today’s data is indicative of a bigger
challenge in the region.”
in the South West were once again the quickest at completing payment, settling
an average of 17.79 days late, quicker than 18.34 in Q1 but slower than 15.83
days in Q2 2010, while Northern Ireland was found to be the second fastest at
completing payments, taking, on average, 19.25 days longer than they should.
this month, cabinet minister Francis Maude highlighted the need for payments to
be settled more promptly throughout the supply chain. Talking to a gathering of
government buyers and SME representatives Maude announced that he would be
asking all government departments to check that contractors were paying
sub-contractors within 30 days of completion.