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.
On day one of SIBOS, panellists unanimously agreed that doing nothing to modernise payments was no longer safe bet for transaction banking.
On day one of Sibos 2017, Stefan Dab, The Boston Consulting Group led a conversation examining the future of correspondent banking, and specifically the pain points corporate treasurers face in their cross-border payments operations and where technology can be developed to alleviate these.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.