The Better Payment Practice Group (BPPG) Welcomes The Latest Survey On European Payment Times

The Better Payment Practice Group (BPPG) welcomes the latest survey on European payment times from business information company, Dun & Bradstreet, but is urging businesses not to rest on their laurels when it comes to paying bills on time.

The survey of 1.3 million companies across six countries in Western Europe shows that for the second year running the UK comes third best in the European payment league with just over 57 per cent of UK companies now paying bills promptly.

Within the UK, the agricultural industry has the best payment performance record, with real estate companies having the second best record. The survey is good news for the construction industry, which has moved from 4th place to become the third best payer in a league of the 14 main industrial sectors.

Kurt Obermaier of the Credit Services Association and a member of the Better Payment Practice Group says: "UK companies used to have the reputation for being one of the slowest payers in Europe. It is therefore very encouraging that we have maintained our place half way up the league table. Yet despite this success, there is no doubt that there is a lot of work to do as many businesses, especially small and medium sized enterprises, have yet to address the weaknesses in their credit management techniques."

With the forthcoming second tranche of the Late Payment of Commercial Debts (Interest) Act 1998 it is even more vital that all businesses take a serious look at their credit management techniques.

Currently, small businesses are only able to levy interest against large businesses and the public sector, limiting the opportunity to apply the legislation. With effect from 1st November 2000, the situation will change dramatically as small businesses will be able to claim from other small businesses on debts incurred under contracts agreed after that date.