Clients taking longer to settle bills, says report

PR agency clients are taking longer than ever to settle their bills, a new report claims.

PR agency clients are taking longer than ever to settle their

bills, a new report claims.



Clients are taking six days longer to settle debts than three years ago,

according to data compiled by market research company, The Prospect

Shop.



Its Business Ratio poll shows outstanding debtor days increased from 67

in the 1996/97 accounting year, to 73 days in 1998/99 for ’leading

consultancies’.



The report analysed and compared the financial performances of 86

leading PR companies. But PRCA Chairman Tom Watson refuted the evidence

in the Prospect report.



He said: ’The picture from the latest PRCA benchmark study indicates

that on average, clients are taking 48 days to pay their bills to

agencies - much quicker than the 73 days identified in the Prospect Shop

report.’



The report was based on data filed by leading consultants at Companies

House. ’The PRCA may have compared companies across a broader

spectrum.



But our findings are factual, based on the financial data required by

law,’ said Lucy Hill, Prospect Shop marketing manager.



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