The latest research from credit checking agency Experian shows average payment times for the print, packaging and paper industries sector fell from 21.60 days beyond the agreed terms in quarter two last year to 18.99 days. The figures also revealed a quarterly fall, from 20.30 days for the first three months of the year.

Payment times for the sector are below the average across all businesses, which, in quarter two, was 23.46 days outside of the agreed terms, down from 24.67 days for the previous quarter and 25.31 days for the same period last year.

The biggest improvements were seen in large firms, which paid their invoices nearly two-and-a-half days faster than for the same period in 2011.

Experian business information services managing director Max Firth said the fall in payment times indicated that "cash flow among firms is getting better".

"It is vital that smaller firms think about their collection strategies, and take on board some of the strategies employed by their larger counterparts to help ensure they get paid out on time.

"This includes monitoring the payment performance of their customers to ensure early signs of deterioration are caught before it is too late," he added.