The UK government is paying companies who supply them quickly but large, private sector companies are still paying too slowly.

The Department of Business Innovation and Skills said that 95% of invoices sent to the UK government are now being paid within 10 days. This is a result of government action taken last year to assist small businesses with cash flow through the economic downturn. 

Local government is not doing as well, with only 42% of invoices being paid within 10 days, the average payment period being 18 days. 

However, only 22 of the FTSE 100 companies have committed to the government’s Prompt Payment Code, which was introduced a year ago. The cost to UK businesses in 2009 is estimated at £189 million, in interest on late paying invoices. 

On average, private companies paid 21 days after the due date and large companies were the slowest payers. 

So while companies are paying slightly faster than they have been, the paying cycle still reflects reluctance to part with the cash. 

The Forum of Private Business said that late payments were hurting suppliers and the worst hit was smaller firms. They appealed to large companies to speed up the payment of invoices to assist the economy to recover and to relieve the rate of unemployment. 

Small UK businesses have experienced a very trying time and they appreciate the prospects that we send to them, without cost, from our Local Search facility in our UK Business Directory. The vast majority of the 1.6 million business listed in our directory are small firms.

 

Monte Huebsch, CEO