Many suppliers fear that speaking out individually will lead to unwelcome reprisals and cost them business, but via the Forum of Private Business' Late Payment Hall of Shame the Forum provides a way for them to identify late payers yet still protect their identities.

The standard deadline for paying bills will be 30 days under a deal with the Council endorsed by EU Parliament in plenary session on Wednesday.

The new rules should ensure that small firms no longer face financial problems due to the late payment of bills by public authorities or companies and bolster solvency, innovation and jobs.

The proportion of smaller firms experiencing the adverse effects of late payments fell by 20% in the first six months of the year.

Research from Bacs, the payment service, suggested the improvement has come about through the efforts of individual businesses in chasing debt.

Mike Hutchinson, head of marketing at Bacs, said: "It's extremely heartening to see that there are now many companies making great strides to help themselves beat the late payments cycle by sharpening up their billing and credit control procedures."

The twice yearly study by Atradius reviews payment behaviours of almost 3,971 businesses around the world. It found that even countries not directly hit by recession, such as China and Poland, were suffering the impact of trading with business in other less robust economies. Late payments or worse, payment defaults, continue to affect the financial health of otherwise stable businesses.