Businesses have been paying bills in October in the quickest time since April 2008, according to Experian's Late Payment Index.

On average, businesses took 20 days beyond their agreed terms to pay their bills during October, compared to 21 days in September and 23 days in October last year.

The data also revealed that medium-sized firms were the fastest at paying their bills and were also the business types to the see the biggest October to November improvement, with the average firm of this size receiving payment 19 days after agreed terms.

"As a whole, this is quickest that UK businesses have paid their bills since April 2008, a potential sign of increasing confidence as firms feel less inclined to hoard cash," said Joe Myers of Experian.