CMRC RESEARCH IDENTIFIES WORST HIT INDUSTRY SECTORS

A survey of over 1,000 firms by the Credit Management Research Centre (CMRC) reveals that businesses within the Business and Financial Services, Manufacturing and Wholesale sectors are being paid up to 26 days overdue, leaving them with cash flow problems and a culture of late payment.

The research, due to be published this month in CMRC’s August 2001 review, also found that less than half the invoices issued by businesses within these industries were paid on time.

Professor Nicholas Wilson, Director of the CMRC and member of the Better Payment Practice Group comments: “Our survey enables us to identify and track payment trends within individual sectors. In some of the sectors more severely affected it is almost traditional for businesses to pay late. This creates a damaging culture of late payment with serious implications for the future success of these sectors.”

The Better Payment Practice Group will be raising awareness of the effects of late payment on businesses within these industry sectors and providing advice on good credit management practices to help combat the problem.

The CMRC is a member of the Better Payment Practice Group.

You can keep up to date with the Better Payment Practice Campaign by sending us an email