FIRMS in Lancashire are taking longer to pay their bills, according to a survey out today.

They take an average of 62 days to settle up, five days more than when the survey was carried out last year.

"Small companies in the North West in particular have one of the worst payment records in the country," said Steve Kilmister of business information group Experia which carried out the survey.

Payment times have increased in industries including engineering.

"Late payment is often an indication of potential cash flow problems. It is noticeable from the latest figures that many of the sectors with the worst performance are those that are most adversely affected by the strong pound and rising interest rates."

The longer payment times come despite the clear message from the Government that the culture of late payment in unaccceptable.

"Cashflow, profits and growth can all be adversely affected by late payment and in some cases can actually jeopardise the very survival of the unwilling victim."