According to Experian’s Late Payment Index, at the end of 2009 UK businesses had improved the time it takes them to pay their bills.

The average number of days it took to settle a bill went down from 23.54 days in December 2008 to 20.88 in December 2009, an improvement of two and a half days. Payment performance only started to improve in August 2009 and since then has continually reduced each month.

The UK’s largest businesses (501+ employees) saw a reduction as they went from 36.1 days late in January 2009 to 28.97 days by December 2009, which was the biggest improvement.

Joe Myers, Experian Business Information division, head of commercial credit, said: “The fact that country’s biggest businesses reduced the time it takes to settle their bills by nearly 20% is a significant turnaround. Companies are more aware now than ever that their credit score is affected by their payment behaviour. While this enables them to negotiate improved terms as well as raise credit from alternative sources or suppliers, it also means that other businesses can make a more informed decisions about working with them.”

In comparison to 2008 however payment performance in 2009 was marginally worse - from 21.51 days in 2008 to 22.79 days after agreed terms in 2009.