Tech firms move closer to paying bills on time

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Tech firms move closer to paying bills on time

Simon Quicke

The time it takes for IT companies to cough up and settle invoices continues to improve as firms start to get closer to paying on time.

The recession saw the number of days beyond terms start to stretch over the horizon as companies struggled to get their hands of funds but the IT sector has been one of the quickest to trim back late payments.

According to Experian figures for the first quarter the IT sector cut the number of days over terms to 16 which was a 48% improvement on Q1 last year.

At the other end of the scale property businesses were taking 33 days after terms to settle their bills.

Joe Myers, head of commercial credit at Experian, said that there had been a stablisation in the level of insolvencies and payments were improving.

"Businesses of all sizes know the impact a late payment can have on their cash flow and also just how important it is to regularly monitor a customer's ability to pay on time," he said.

Overall Q1 payments across the entire economy were slightly slower than in Q4 last year but the impact of poor weather and subsequent postal problems was an explanation put forward by Experian.

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