Member Article

£22bn lost every year through late payments

Britain’s payment habits are getting worse, according to new research. A study by credit management services firm Intrum Justitia revealed that business customers now pay on average after 54.0 days, compared to 53.2 days in 2004. Public authorities take 48.1 days, compared to 47.8 days a year earlier. UK businesses are now losing an average of 1.8% of total revenue to bad debts, according to the research – up from 1.6% in 2004 – equating to almost £22bn a year on UK GDP of £1.2 trillion. A rise in personal insolvencies, ambivalent attitudes to payment and changes in the financing market rules have all helped to increase the risks posed by late payments to British business and particularly suppliers.

This was posted in Bdaily's Members' News section by Ruth Mitchell .