CM December DECEMBER 2018

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EXCLUSIVE REPORT AUTHOR – Nalanda Matia chart, the Agriculture sector pays close to 55 percent of their accounts payables in a prompt manner. This is followed by Construction at approximately 40 percent and then the Personal Services Sector by about 33 percent. The above-named sectors, specifically the Agriculture and Construction verticals have a seasonality element in their operations and earning cycle and possibly not able to bargain payment terms beyond their operating periods and have to pay their suppliers relatively promptly. For all other industries, the percentage of prompt payments remains below the national average of 31.2 percent. It seems that the Government is able to evoke enough confidence among its suppliers to be able to pay only 20 percent of their accounts promptly. The industry payment pattern is something that is noticed in historical periods as well – not just the current one and seem to be wellestablished norms among businesses in each sector. The final segmented look at the percentage of prompt payments is by regions. Like the last two segmentations, the time series view of prompt payments shows that the pattern of percentage of prompt payments has remained more or less stable over the past 12 months. A glance at the regional breakdown of percentage prompt payments shows that the East Anglia region registers the highest percentage of prompt payments with 38 percent of their accounts payable promptly. Greater Manchester, which is on the other side of the spectrum pays 25.1 percent of their accounts payable promptly. Businesses in the United Kingdom do not vary widely in payment manner as they do by business size or by industry segment. This indicates some consistency in the nation’s economic profile as far as the larger regions are concerned, which will prove to be as a positive as the country explores the arduous process of Brexit. Finally, we take a look at UK business health under the backdrop of Dun & Bradstreet’s Failure and Delinquency scores, classifying business into four categories based on their risk profiles. The first category are businesses with the lowest risk profile, by both delinquency and failure perspectives. Around 82 percent of all businesses considered for this study fall into this segment. These are the ideal set of businesses to engage in commerce and will prove to be the ideal customers down the line. The next segment is made up of businesses that are marked as the riskiest with high probability of failure in the next 12 months, but with a low risk of severe delinquency. These are the businesses that might be able to cover their payables before closing their doors but need to be monitored very closely. It might be worth to cut as many ties with these businesses as possible. The UK economy has approximately one percent of these businesses that might face insolvency in the next 12 months. The third risk segment are businesses that are in a contrasting situation – with high risk of delinquency in the next 12 months, but not projecting a high risk from the standpoint of liquidation. These businesses are ones under severe financial duress and having severe difficulties managing their cashflow. About 13 percent of all businesses fall into this category and any relationship with them needs to be handled with utmost caution. The final segment – about four percent of the UK business population – are considered to be under severe risk. These businesses face the risk of both severe delinquency as well as insolvency in the next 12 months. Any commercial relationship entered into with these set of businesses has a very high probability of incurring severe losses. In conclusion, the overall health of the business population in the UK seems to be fairly robust, with pockets of concern present in some major industries. With the country’s inflation hovering above target, and uncertainties looming in the next few quarters, monetary policy is expected to normalise gradually. To help businesses gain stability and move towards a sustainable growth path in this environment, internal policies like strategic investments and adoption of productivity-augmenting technologies may prove to be effective. Nalanda Matia is Senior Director, Econometrics Solutions at Dun & Bradstreet. The Recognised Standard / www.cicm.com / December 2018 / PAGE 44
“CSA compliance essentials is a one stop shop to key compliance changes and highlights. It helps me keep up-to-date with factors that could potentially impact my firm and its clients and customers, saving me lots of time having to complete research myself.” Hayley Crombleholme Ascent Performance Group Ltd CSA compliance essentials Compliance updates straight to your inbox • Monthly compliance updates with accompanying questions to aid learning • Access to a regularly updated knowledge database • Email alerts to notify when new content is available • The ability to trace progress for audit purposes and compliance records • Annual certification To learn more contact: t: 0191 217 3073 e: sales@csa-uk.com or visit www.csa-uk.com The Recognised Standard / www.cicm.com / December 2018 / PAGE 45
Page 1 and 2: CREDIT MANAGEMENT CM DECEMBER 2018
Page 3 and 4: 4 EDITOR'S COLUMN SEAN FEAST DECEMB
Page 5 and 6: ITSWISETOSTAYALERT! SANCTION &PEP D
Page 7 and 8: New team for the digital market ATR
Page 9 and 10: Cedar Rose launches new late payer
Page 11 and 12: Bailiff research ridiculed as ‘ma
Page 13 and 14: OPINION First impressions Philip Ki
Page 15 and 16: OPINION Sean Feast FCICM Not so Fai
Page 17 and 18: “If you work hard then good thing
Page 19 and 20: OPINION BUDGET SURPRISES Time to du
Page 21 and 22: ASK THE EXPERTS AUTHOR - Lauren Car
Page 23 and 24: Exclusive offers for all CICM and F
Page 25 and 26: OPINION AUTHOR - Peter Walker On th
Page 27 and 28: TRADE TALK A true collaboration Wor
Page 29 and 30: Fallen angels in the making FIRMS n
Page 31 and 32: COUNTRY FOCUS AUTHOR - Adam Bernste
Page 33 and 34: OPINION AUTHOR - Chris Sanders FCIC
Page 35 and 36: The Recognised Standard / www.cicm.
Page 37 and 38: PAYMENT TRENDS AUTHOR - Jason Braid
Page 39 and 40: CAREERS ADVICE CREDIT SALARIES UK 2
Page 41 and 42: A Credit Manager walks into a bar
Page 43: EXCLUSIVE REPORT AUTHOR - Nalanda M
Page 47 and 48: CICM QUALIFIED your way CICM qualif
Page 49 and 50: CICM MEMBER EXCLUSIVE Your CICM lap
Page 51 and 52: 3 YEARS IN 2018 Credit Controller A
Page 53 and 54: MAKE YOUR CASE Karen Young Peter Wa
Page 55 and 56: Are you a Leader or follower? CICMQ
Page 57 and 58: Proud supporters of CICMQ With over
Page 59 and 60: BRANCH NEWS A Successful Re-Launch
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CM December DECEMBER 2018

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