Credit expert Experian has reported that payments across the food service sector are being met more promptly than last year, with food retailers and the food manufacturing sector setting the trend.
The Late Payment Index figures released for the three months July to September 2012 showed suppliers paying their bills on average 29.15 days after agreed terms, in contrast to the same period in 2011 when payments were made on average 34.21 days late. Manufacturers have been meeting their bills 22.91 days after invoicing as opposed to 27.07 days for the same quarter last year. UK businesses as a whole are clearing their invoices around 1.3 days earlier than for the same period last year.
Larger businesses have made the most improvement in meeting invoices more quickly and have closed the gap between larger and smaller businesses quite substantially, which is good news for all food service businesses, enabling more accurate forward planning for both suppliers and wholesalers.
Although improved times for paying invoices have been noted across the country, there have been regional variations with the greatest improvements being seen in the North West.
Business analysts estimate that the trend will continue and that wholesalers will feel more assured that invoices will not be left outstanding. This signifies a greater stability and confidence in the food supply chain; allowing more innovative planning by all sectors of the food service industry, without the fear of mounting unpaid bills resulting in difficulty for those wholesalers.
