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PAYMENT TRENDS<br />
Mainly overcast with<br />
a few bright spots<br />
The latest monthly business to business payment<br />
performance statistics.<br />
AUTHOR – Jason Braidwood FCICM(Grad)<br />
THE last payment performance<br />
statistics did not make for pleasant<br />
reading, with the majority of sectors<br />
and all regions posting increases<br />
in payment terms. This month’s<br />
results are mixed, with yet more<br />
worrying performances. But there are, at least,<br />
some signs of improvement. The average Days<br />
Beyond Terms (DBT) figures across sectors has not<br />
shifted, remaining on 16.2 days, while regions have<br />
increased slightly to 17.9 days.<br />
SECTOR SPOTLIGHT<br />
The sector spotlight does look healthier, with over<br />
half of the 22 sectors reducing their payment terms.<br />
The Financial and Insurance sector has performed<br />
particularly well reducing its DBT by 6.3 days.<br />
Wholesale and retail trade has also improved with<br />
a reduction of 5.2 days. Education is now top of the<br />
table as the best performing sector after a reduction<br />
of 1.7 taking its overall DBT to 9.5 days.<br />
At the opposite end of the scale, it has been a<br />
disastrous month for Mining and Quarrying, with<br />
DBT increasing a huge 9.5 days up to 27.7 days<br />
meaning it is now the worst performing sector.<br />
Hospitality has also had a poor month, with DBT<br />
increasing by 6.4 days.<br />
REGIONAL SPOTLIGHT<br />
The regional standings do not show a dramatic<br />
improvement in performance, but there are, at<br />
least, some regions that have made reductions.<br />
Northern Ireland has responded to being bottom<br />
of the table by being the top performing region this<br />
month, with a reduction in payment terms of 2.8<br />
days. Yorkshire and Humberside (-1.7), East Anglia<br />
(-0.8) and Wales (-0.7) have all reduced their overall<br />
DBT.<br />
All of the other regions have made further<br />
increases to their payment terms, albeit some only<br />
slight – Scotland (+0.7) and London (+0.5 days). It<br />
has, however, been another dreadful month for the<br />
North West, with its DBT increasing by a further<br />
5.7 days, meaning it is now the worst performing<br />
region with an overall DBT of 21.4 days.<br />
Jason Braidwood FCICM(Grad),<br />
Head of <strong>Credit</strong> and Collections at <strong>Credit</strong>safe<br />
Business Solutions.<br />
The Recognised Standard / www.cicm.com / April <strong>2019</strong> / PAGE 36
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