Large UK companies have started to address their poor payment practices towards suppliers, according to an analysis by Experian.
The credit rating agency (CRA) reports that businesses settled their bills 1.3 days earlier in Q312 compared to the same period in 2011, although they still took an average of 24.88 days beyond agreed terms to pay up.
While large companies are typically the worst culprits, Experian said the difference in late payments between small and large business has come down from 20 days during 2009 to fewer than 12 days, thanks to “improved behaviour” by the biggest companies.
“Late payments have significantly dropped compared to the same time last year and it’s encouraging to see that the gap between payment performance of the biggest and smallest businesses has continued to close,” said Max Firth, managing director of Experian’s business information division. “This is a sign of improved behaviour among larger businesses.”
Companies in the food retailing industries saw the most significant improvements, although firms in this sector are still paying an average of almost 30 days beyond their contractually agreed terms. While there was an improvement compared to last year, payment times deteriorated slightly in Q312 from the previous quarter.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.