June 2017 Credit Management magazine

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PAYMENT TRENDS BALMY SPRING Jason Braidwood FCICM(Grad), Head of Credit and Collections at Creditsafe Group, analyses the latest monthly business-to-business payment performance 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 Getting Better APRIL 2017 was nothing if not beyond payment terms (DBT). This is a level eventful. United Airlines +0.6 and Scotland White not achieved since September last year, and House Press Secretary, Sean Spicer, a significant improvement from 16 DBT in +2.4 battled for the award for worst North PR West March. disaster, before the biggest +0.1 news of Yorkshire the month & Humberside In complete contrast, should there be a (and year to date) broke when Theresa May prize for the most spectacular fall from grace, announced a ‘snap’ West general Midlands election 0 on 8 the Education sector would be the runaway June. winner. Having reached its lowest (DBT) level Thankfully, back East in Midlands the world of credit -0.2 to date in March, which was also the lowest management things East have Anglia not been quite -0.1 so ever score recorded by our audit across all turbulent (no pun intended). While April did sectors, the sector shot up to ten (DBT) during see the industry-wide average Wales for bill -1.6 paying April, a huge 500 percent increase. creep up to 13 days beyond terms (DBT) after However, when looking in wider context what was a record-breaking +1.5 month South in March West over the three years we have been reporting (11 days), this is consistent with the same on industry payment trends, such a fluctuation South East -1.4 time last year and a 19 percent decrease on is not a complete anomaly for the Education the same time two years ago. +1.8 London sector. It’s one that has experienced both As we know all too well, fighting the culture highs and lows at various points throughout of late payments Northern remains Ireland ongoing -1.2 battle for businesses of all sizes across all sectors. Getting Worse The role of the credit management industry in this fight remains as crucial as ever, but Sector Sector perhaps none more so than now after post Article 50 ripples have spread. While it’s not been a bad start to the second quarter of the year, now is not the time for complacency. If the picture across our core industry sectors is to remain as rosy Financial as the foundations laid during quarter one, & Insurance Manufacturing then we will need to see some improvement Getting Better -6.5 -1.8 moving forward. INDUSTRY SECTORS If there was a special award for the most improved sector this month, then the Finance and Insurance sector would be raising its glass once again. For the second month in a row the industry has topped our ‘Getting Better’ table, with further improvement in April seeing the sector fall to an average nine days Getting Worse Top Five Prompter Payers Apr-17 Change on Mar 17 Bottom Five Poorer Payers Apr-17 Chang 38 June 2017 www.cicm.com Entertainment 7.6 0.0 International The Bodies Recognised Standard 19.3 1.5 Agriculture, Forestry and Fishing 8.2 -0.6 Energy Supply 17.3 3.9 Education +8.3 Top Five Prompter Payers Business from Home +4.7 the years, albeit with no clear distinguishable pattern in terms of time periods. On a more positive note, Manufacturing, so often the flag-bearer for the general health of the UK’s economy as a whole, started quarter two on a solid footing. The sector saw payment conditions improve from 14 (DBT) in March to 13 days in April. Meanwhile, the Retail sector, like Manufacturing also a key indicator for the economy’s strength, opened quarter two with a repeat performance March at an average of ten days beyond payment terms. REGIONS April was essentially a case of steady as you go from a regional standpoint, with no change in payment conditions across East Anglia, the South East, South West, West Midlands or Yorkshire and Humberside. The best performing area was Northern Ireland, which dropped down to ten (DBT) having been at 12 during March. Agriculture, Forestry & Fishing -0.6 Energy Supply +3.9 Public Administration -0.1 Health & Social +3.3 Business Admin & Support 0.0 Transportation & Storage +3.3 Bottom Five Poorest Payers
.6 .4 s .8 rse Real 0 Estate 1 2 3 4 59.3 6 0.6 7 8 Bottom Hospitality Five Poorest Payers 9.6 0.0 International Bodies 19.3 1.5 Getting Energy Better Supply 17.3 3.9 Water & Waste 17.1 0.1 Scotland Mining Quarrying 16.5 2.4 Construction 14.2 0.0 North West .1 Yorkshire & Humberside s 0 s ia .5 st d Getting Better Sector Getting Worse Bottom SectorFive Poorest Payers Top Region Five Prompter Payers -0.2 -0.1 -1.6 South West -1.4 London -1.2 Financial & Insurance -6.5 Education +8.3 Top Five Prompter Payers +8.3 Manufacturing -1.8 Business from Home +4.7 Agriculture, Forestry & Fishing -0.6 17 Bottom Five Poorer Payers Apr-17 Change on Mar 17 Agriculture, International Bodies Financial 19.3 1.5 Forestry & Insurance Manufacturing & Fishing Energy Supply 17.3 3.9 Getting Better -6.5 -1.8 -0.6 , ergy Supply +3.9 Water & Waste 17.1 0.1 Mining and Quarrying 16.5 2.4 Getting Construction Worse Education 14.2 0.0 Business from Home +4.7 Top Five Prompter Payers Apr-17 Change on Mar 17 Entertainment Business Admin 7.6 0.0 & Support Agriculture, Forestry and Fishing 8.2 -0.6 Financial and 0.0 Insurance 9.1 -6.5 Real Estate 9.3 0.6 Health Hospitality Transportation 9.6 0.0 Public Administration -0.1 & Social +3.3 & Storage +3.3 Top Five Prompter Payers Apr-17 Change on Mar 17 Entertainment 7.6 0.0 Agriculture, Forestry and Fishing 8.2 -0.6 Financial and Insurance 9.1 -6.5 17 Bottom Five Poorer Payers Apr-17 Change on Mar 17 This is actually its best ever performance, and if there is further improvement next month, it would join the South West, West Midlands, East Anglia and Wales as the only regions to ever reach single figures for (DBT). Alongside Northern Ireland, the only two other regions to improve their payment performance were Wales and the East Midlands, both of which paid their bills on average ten days beyond terms having been at 11 in March. The slowest paying regions in April were Scotland and the North West, with businesses in both areas paying their bills on average 14 days beyond terms. However, this represented a bigger fall from grace for the North West, having been at 12 (DBT) in March. Elsewhere, the South West maintained its performance from March during April, again being the only region to record single figures as it held its level of nine days. This is 25 percent under the regional-wide average for the month. Region Health 8 7 6 5 4 3 Transportation 2 1 0 & Social & Storage +3.9 +3.3 +3.3 Energy Supply Energy Supply +3.9 Public Administration -0.1 If there was a special award for the most improved sector this month, then the Finance and Insurance sector would be raising its glass once again. Public Administration -0.1 & Social West Midlands & Storage 0 +3.3 +3.3 East Midlands -0.2 International Bodies 19.3 1.5 East Anglia -0.1 Energy Supply 17.3 3.9 Water & Waste Wales 17.1 -1.6 0.1 Mining and Quarrying 16.5 2.4 Construction +1.5 14.2 South West 0.0 South East -1.4 +1.8 London Northern Ireland -1.2 International Bodies 19.3 1.5 Energy Supply Getting Worse 17.3 3.9 Water & Waste 17.1 0.1 Mining and Quarrying 16.5 2.4 Construction 14.2 0.0 10 Financial & Insurance M 5 Getting Better -6.5 Region Apr-17 Change on Mar 17 Getting Worse 0 Wales 9.1 -1.6 North West Educatio South East 9.6 -1.4 Getting Worse Scotland +8.3 East Anglia 10.0 -0.1 Yorkshire and Humbers Northern Ireland Scotland 10.3 -1.2 London 13.8 DBT East Midlands 10.4 -0.2 West Midlands Top Five Prompter Payers Northern Ireland 10.3 DBT Business Admin & Support 0.0 Region Health Business Admin & Support 0.0 +0.6 +2.4 +0.1 Transportation Bottom Five Poorest Payers Wales 9.1 DBT North West 14.3 DBT 0 1 2 3 4 5 6 7 8 Getting Better Scotland North West Yorkshire & Humberside Bottom Five Poorer Payers Apr-17 Change on Mar 17 Bottom Five Poorest Payers Bottom Five Poorer Payers Apr-17 Change on Mar 17 West Midlands 11.1 DBT South West 10.8 DBT Region Yorkshire & Humberside 13.6 DBT East Midlands 10.4 DBT London 13.4 DBT East Anglia 10.0 DBT South East 9.6 DBT 25 20 15 Bottom Five Poore s The Recognised Standard Financial Bottom Five Poorest Payers & Insurance Manufacturing Agriculture, Forestry & Fishing www.cicm.com Public June 2017 Business Admin 39 Administration & Support
Page 1 and 2: CM CREDIT MANAGEMENT JUNE 2017 £10
Page 3 and 4: CONTENTS JUNE 2017 www.cicm.com REG
Page 5 and 6: THE CREDIT CONTROL RECRUITMENT SPEC
Page 7 and 8: NEWS IN BRIEF SUPPLY CHAINS IN DANG
Page 9 and 10: News in Numbers - provided by the M
Page 11 and 12: INSOLVENCY PROPERTY RECEIVERS - A S
Page 13 and 14: BENCH PRESS MONEY, MONEY, MONEY We
Page 15 and 16: Notall Robots arebuilt thesame! Man
Page 17 and 18: OPINION INFORMATION AND TRUST Matth
Page 19 and 20: the flexibility required if women h
Page 21 and 22: ACHIEVING THE POSSIBLE Louise Schof
Page 23 and 24: The smooth processes of Working Cap
Page 25 and 26: LEGAL MATTERS "A MARVELLOUS AND VAL
Page 27 and 28: TRADE TALK NEGOTIATING TABLE Lesley
Page 29 and 30: ARGENTINA EMERGES EULER Hermes has
Page 31 and 32: three cases of counsel, of solicito
Page 33 and 34: THE CICM MAGAZINE FOR CONSUMER AND
Page 35 and 36: ecover The Recognised Standard www.
Page 37: ENFORCEMENT AGENTS TIME TO PROVE YO
Page 41 and 42: In the first of a two-part article
Page 43 and 44: EDUCATION APPRENTICESHIP MYTH BUSTE
Page 45 and 46: LEGAL TRAINING Are you up-to-date w
Page 47 and 48: CICM EDUCATION CONFERENCE 2017 22 J
Page 49 and 50: unlimited credit information for an
Page 51 and 52: THE B2B DEBT RECOVERY SPECIALISTS T
Page 53 and 54: PARTNERS TO TALK TO YOU... Safe’s
Page 55 and 56: BRANCH NEWS 60SECONDS WITH THAMES V
Page 57 and 58: COLLECTIONS ADVISOR PROGRESS YOUR C
Page 59 and 60: Cr£ditWho? CICM Directory of Servi
Page 61 and 62: Cr£ditWho? CICM Directory of Servi
Page 63 and 64: MONTHLY PRIZE CROSSWORD CREDIT CONU

June 2017 Credit Management magazine

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