Experian's latest study reveals that UK businesses take an average of 61.1 days to pay bills and motor traders - who had previously always exceeded the national average significantly - are now taking the same length of time.

Small and medium sized motor dealers take less time to pay their invoices - at 59 and 60 days - than the average number of days taken by small and medium sized companies in all industries, which have an average of 60.2 and 61.3 days. Bigger dealer groups have also improved their payment performance. Larger dealers now take an average of 76 days to pay their bills – 5.5 days less than the national for large companies and seven days less than they took to pay their bills six months ago.

“Overall, the time it has taken for dealers to pay their bills has been improving since November 2004, when it had reached its highest point of 64.4 days,” said Kirk Fletcher, managing director of Experian's Automotive division. “Companies that take their time to pay their invoices may be viewed as having financial problems and in this environment businesses are more cautious about trading with companies that have a poor payment performance record. “This can affect motor dealers' business-to-business transactions.”