COMPANIES in Lancashire are taking longer to pay their bills, according to a survey out today.

And it is the biggest firms which are the worst culprits, according to the report by business information firm Experian.

Small firms in the region take an average of 56 days following an invoice, medium firms take 57 days and large firms take 74 days.

The average for all companies was 57 days, a slight increase on last year's survey.

The increase comes in spite of the introduction of a right to interest payment on late payment of bills. Nationally the slowest payers are the water companies, along with vehicle and equipment rental companies.

"Obviously these are average figures and many firms pay on or before the date agreed with their supplier," said Peter Brooker of Experian.

"But on average both large and medium sized companies are taking two days longer than a year ago and small companies one day longer."

He said some slow payers were merely acting within the terms agreed with their suppliers.

But he said where firms were deliberately paying late it was having a devastating impact.

"It can lead to bad debts and affect the stability and growth prospect of the company, even leading to business failure."

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