Companies taking longer to pay their bills

One year after the introduction of right-to-interest legislation designed to speed up payment of bills, companies are taking even longer to settle, reports business information company Experian.

This is all the more surprising, given the healthy state of the economy and the growing trend towards internet-based purchasing.

Experian has looked at the performance of 150,000 companies and found that, on average, payment time has risen by one day over the past year to 59 days. Large companies tend to be the slowest payers, taking on average 74 days - up two over the past year.

Late payment legislation recognises 30 days as the norm. Experian found that just under 20% of suppliers give 60 days as their standard terms, and about half that give 90 days.

The company also notes that payment terms have become an important element in negotiating contracts.

Elliott Chase