The late payment culture among textiles and clothing companies is showing signs of improvement, according to Experian’s Late Payment Index.
Textiles and clothing companies were on average 24.7 days late in paying their bills in October. This was an improvement of 1.7% on September and 8.8% on October 2008.
However, the clothing industry continues to underperform against other industries. Across all UK markets, companies paid their bills an average of 20.9 days late in October, marking a 2.5% improvement on last month and a 9.5% improvement on October 2008.
Joe Myers, head of commercial credit at Experian’s Business Information division, said: “As a whole, this is quickest that UK businesses have paid their bills since April 2008, a potential sign of increasing confidence as firms feel less inclined to hoard cash.”
For the second month running, the biggest month-on-month improvement in late payments came from the largest businesses - those with over 500 employees - which saw a 5% improvement and paid their bills an average of 23.4 days late in October. However, large businesses still took longer to settle their debts than small or medium-sized companies. The fastest payments came from medium-sized businesses with 100 to 500 employees, which were on average 19.2 days late in paying bills.