New research shows that invoice payment times vary dramatically around the world

- Russia leads the way in prompt payments -

The average payment periods for sales invoices across the world vary dramatically, according to the latest research from the Grant Thornton International Business Owners Survey (IBOS). The survey of over 6,000 medium sized companies in 26 countries shows that Russia leads the way for promptness with an average payment period of just 20 days - an improvement from 24 days in the survey last year. The global average for payment periods in 2003 is 46 days.

The research also shows that almost three-quarters of businesses in Russia receive payment within 30 days – a significantly higher proportion than in any other country – and 46 per cent are paid cash on delivery or within seven days. Other countries where companies are paid quickest include Indonesia (27 days), Pakistan (33 days), Germany (36 days), Sweden, Australia and New Zealand (all 37 days).

According to IBOS, the slowest payers with averages of more then 70 days are Italy, Spain and Greece.

Comparison with last year’s IBOS results shows little change in the global average for payment periods. However, there are some major movements in specific countries. Singapore’s average payment period has increased sharply in a year from 44 days to 61 days, probably reflecting the difficult business environment there last year. Two other countries in East Asia – Hong Kong and Japan - also saw increases of nine and seven days respectively. The biggest increase outside of East Asia was in Ireland where the average payment period rose from 52 to 59 days.

Andrew Godfrey, Head of International and European Services, Grant Thornton comments:

"Late payments is a continuing problem for businesses, exacerbated during times of recession. While the global average for average payment periods remained almost static in 2003, there have been some disturbing increases in some countries. The picture in Singapore, Hong Kong and Japan gives cause for concern, for example, and mirrors the overall, gloomy picture in the region last year.

"The IBOS findings also show that average payment periods differ dramatically around the world with Russia being by far the quickest at less than half the global average. The approach in Russia is partly driven by the fact that cash on delivery (COD) is still very commonly used, a practice which most Russian businesses adopted in the era of rapid economic change in the country."

Table 1: Average days for payment of sales invoices 2003

Notes to editors

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