Businesses think that credit terms are getting longer

A Poll by the Better Payment Practice Group has found that businesses think that credit terms are getting longer.

The poll, which was held on the BPPG website, found that 76% of respondents answered yes to the question 'Are credit terms getting longer in your experience'

The respondents, who range from micro businesses with 1 to 9 employees to businesses with over 250 employees, came from different sectors of business.

The results though were similar showing that the trend is throughout all businesses regardless of size.

Philip King, member of the BPPG and Director General of the Institute of Credit Management, commented: "The figures suggest that businesses are seeing longer credit terms as a legitimate way to extend payment. They can manage their cash flow better by keeping money in their bank for longer."

"It is also a sign that businesses increasingly recognise the role that professional credit management can play in the negotiation of credit terms that could benefit both parties and ensures the prompt collection of cash when it is due."