In February, MarketInvoice will be launching ‘The State of Late Payment’ report, a detailed anaylsis of over 20,000 invoices taken from debtors across the world in the last 5 years.
The second preview of the report features the public sector, looking at the payment records of councils, hospitals, schools and more.
UK public sector as debtor:
|Paid on time||3.3%||4.0%|
|1 week late +||44.3%||34.1%|
|2 weeks late +||30.9%||22.6%|
|1 month late +||10.9%||6.5%|
|Average payment days:||6.3 days late||0.4 days late|
* Data taken from over 1500 invoices across 5 years – paid by local authorities & councils, educational institutions, the NHS, the Bank of England and central Government departments.
- Late payment by public sector bodies appears to have increased significantly in the last year. In 2014 44.7% of all public sector owed invoices were paid late, in 2015 this number jumped to 61.7% – meaning nearly two-thirds of invoices owed by public sector bodies were paid late.
- In 2015 the public sector (61.7% paid late) had a worse record than FTSE 350 (60.9%) companies, banks (44.7%), and tech companies (50.5%).
- One third (31%) of invoices owed by public sector bodies were paid more than two weeks late.
- If you’re owed money by a public sector body, you will on average be paid nearly 1 week late (6.3 days), again this compares badly with FTSE 350 (4 days), banks (0.3 days), and tech companies (1.7 days).
- Educational institutions have a particularly poor record –
- 8 out of 10 of payments by schools, colleges and academies were paid late last year.
- Average pay day of 17.9 days late.
|Debtor sector||Percentage of invoices paid late last year|
|Debtor sector||Average pay day last year (days late)|
|FTSE 350 companies||4.0|
|Debtor sector||Percentage of invoices paid 2 weeks or more late|
|FTSE 350 companies||12.3%|
When a business uses MarketInvoice, we capture the due date, expected payment date, as well as the issue date of every invoice. Invoices are verified by the end debtor. Debtors pay into a trust account managed by MarketInvoice, meaning record the eventual payment date when the invoice is settled.