Credit Management APRIL 2019

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PAYMENT TRENDS Mainly overcast with a few bright spots The latest monthly business to business payment performance statistics. AUTHOR – Jason Braidwood FCICM(Grad) THE last payment performance statistics did not make for pleasant reading, with the majority of sectors and all regions posting increases in payment terms. This month’s results are mixed, with yet more worrying performances. But there are, at least, some signs of improvement. The average Days Beyond Terms (DBT) figures across sectors has not shifted, remaining on 16.2 days, while regions have increased slightly to 17.9 days. SECTOR SPOTLIGHT The sector spotlight does look healthier, with over half of the 22 sectors reducing their payment terms. The Financial and Insurance sector has performed particularly well reducing its DBT by 6.3 days. Wholesale and retail trade has also improved with a reduction of 5.2 days. Education is now top of the table as the best performing sector after a reduction of 1.7 taking its overall DBT to 9.5 days. At the opposite end of the scale, it has been a disastrous month for Mining and Quarrying, with DBT increasing a huge 9.5 days up to 27.7 days meaning it is now the worst performing sector. Hospitality has also had a poor month, with DBT increasing by 6.4 days. REGIONAL SPOTLIGHT The regional standings do not show a dramatic improvement in performance, but there are, at least, some regions that have made reductions. Northern Ireland has responded to being bottom of the table by being the top performing region this month, with a reduction in payment terms of 2.8 days. Yorkshire and Humberside (-1.7), East Anglia (-0.8) and Wales (-0.7) have all reduced their overall DBT. All of the other regions have made further increases to their payment terms, albeit some only slight – Scotland (+0.7) and London (+0.5 days). It has, however, been another dreadful month for the North West, with its DBT increasing by a further 5.7 days, meaning it is now the worst performing region with an overall DBT of 21.4 days. Jason Braidwood FCICM(Grad), Head of Credit and Collections at Creditsafe Business Solutions. The Recognised Standard / www.cicm.com / April 2019 / PAGE 36
PAYMENT TRENDS AUTHOR – Jason Braidwood FCICM(Grad) Top Five Prompter Payers Region April 19 Change from March 19 Education 9.5 -1.7 International Bodies 10.2 -1.8 Public Administration 11.8 0.9 Health and Social 12 -0.1 Entertainment 12.2 1 Getting Better Financial and Insurance -6.3 Wholesale and Retail Trade -5.2 Professional and Scientific -2.1 Other Service -1. Real Estate -16 Top Five Prompter Payers Region April 19 Change from March 19 Yorkshire and Humberside 15.3 -1.7 South West 15.8 1.1 East Anglia 16.4 -0.8 Scotland 17.7 0.8 London 18 0.5 Bottom Five Poorest Payers Region April 19 Change from March 19 Mining and Quarrying 27.7 9.5 Water and Waste 23.6 -0.4 IT and Comms 19.8 1 Manufacturing 19.3 1.5 Business Admin and Support 18.9 -1.2 Getting Worse Mining and Quarrying 9.5 Hospitality 6.4 Manufacturing 1.5 Agriculture, Forestry and Fishing 1.4 Entertainment 1.0 Bottom Five Poorest Payers Region April 19 Change from March 19 North West 21.4 5.7 Northern Ireland 20.2 -2.8 West Midlands 18.7 2.1 South East 18.3 2.3 East Midlands 18 2.5 This month’s results are mixed, with yet more worrying performances. But there are, at least, some signs of improvement. SCOTLAND 0.8 DBT NORTHERN IRELAND -2.8 DBT Region Getting Better – Getting Worse -2.8 2.7 0.8 -0.7 0.5 0.8 1.1 2.1 2.3 -1.7 Northern Ireland East Midlands East Anglia Wales London Scotland South West West Midlands South East Yorkshire and Humberside WALES -0.7 DBT SOUTH WEST 1.1 DBT WEST MIDLANDS 2.1 DBT YORKSHIRE & HUMBERSIDE -1.7 DBT EAST MIDLANDS 2.7 DBT LONDON 0.5 DBT EAST ANGLIA 0.8 DBT SOUTH EAST 2.3 DBT The Recognised Standard / www.cicm.com / April 2019 / PAGE 37
Page 1 and 2: CREDIT MANAGEMENT CM APRIL 2019 £1
Page 3 and 4: 27 TRADE TALK LESLEY BATCHELOR APRI
Page 5 and 6: 3 YEARS IN 2018 Credit Controller A
Page 7 and 8: Mercedes accelerates out of the blo
Page 9 and 10: Victory for CICM and EFTA on short-
Page 11 and 12: Utility Week Conference focuses on
Page 13 and 14: OPINION As simple as ABC Assume not
Page 15 and 16: OPPORTUNITY KNOCKS When MBNA was so
Page 17 and 18: CICMQ Shell maintains high standard
Page 19 and 20: Herb ran a business called Kalyx, a
Page 21 and 22: The Recognised Standard / www.cicm.
Page 23 and 24: for 2019 is about £172 million, di
Page 25 and 26: OPINION Data Availability Developin
Page 27 and 28: TRADE TALK SIZE MATTERS The outcome
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Page 31 and 32: OPINION AUTHOR - Lawrie Holmes fina
Page 35: As the Winners of the Legal Team of
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