Firms are paying bills faster than they did a year ago, according to the latest Late Payment Index from information services company Experian.

Its analysis shows that during January to March this year, businesses paid their bills an average of 20.93 days late compared to 23.61 days late in Q1 2009. 

Joe Myers, head of commercial credit at Experian, says: “This is a positive step for businesses, mirrored by a stabilisation in business insolvencies over the last year.

“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.”