Credit Management November 2019

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PAYMENT TRENDS Mixed Opinions The nature of payment terms across regions and sectors remains unpredictable. AUTHOR – Jason Braidwood FCICM(Grad) FOLLOWING positive performances over the past couple of months, the latest payment statistics are more of a mixed bag and more in keeping with the unpredictable weather we have experienced of late. The average Days Beyond Terms (DBT) figures across sectors and regions increased by 0.4 and 0.9 days respectively. SECTOR SPOTLIGHT The sector standings are not full of improvement – only eight of the 22 sectors reduced their payment terms. The Business from Home sector saw the biggest improvement, reducing its DBT by an impressive 7.6 days. After a difficult month, the Energy Supply sector has managed to reduce its terms by 4.3 days. For the majority of sectors, it has been a disappointing month with increases to payment terms. It has been particularly tough for the Mining and Quarrying sector, its DBT has increased by a huge 7.1 days, taking its overall DBT to 21.5 days making it the worst performing sector. Elsewhere, IT and Comms have struggled, with its DBT rising by 5.3 days. Business Admin and Support (+3.5 days), Agriculture, Forestry and Fishing (+3.3 days) and Water and Waste (+2.2 days) have also had difficulties. Despite a slight increase of 0.8 days, Public Administration remains the best performing sector. REGIONAL SPOTLIGHT At a regional level, the majority have seen increases to payment terms, but not dramatically. Northern Ireland has returned to claim the dubious title of the worst performing region following an increase in its payment terms of 2.8 days, the biggest increase across all regions. Increases for the West Midlands (+2.3 days), North West (+2.1 days) and East Anglia (+2.0 days) have also seen them move the wrong way in the regional standings. It was, however, a positive month for two of the 11 regions, which made reductions to their payment terms. The biggest improvement came from the East Midlands, moving off the bottom of the table following a reduction of 3.4 days. A further reduction of 1.2 days means the South East is now the best performing region with an overall DBT of 9.9 days. Jason Braidwood is Head of Credit and Collections at Creditsafe Group. The Recognised Standard / www.cicm.com / November 2019 / PAGE 36
PAYMENT TRENDS Top Five Prompter Payers Region Sept 19 Change from Aug 19 South East 9.9 -1.2 South West 10.9 1.1 Wales 11.7 1.3 East Midlands 12.2 -3.4 West Midlands 12.3 2.3 Getting Better Dormant -8.4 Hospitality -1.9 Manufacturing -0.5 Health and Social -0.4 Construction -0.2 Top Five Prompter Payers Sector Sept 19 Change from Aug 19 Public Administration 6.5 0.8 International Bodies 7.7 1.6 Health and Social 8.3 -0.4 Entertainment 8.8 0.3 Hospitality 8.9 -1.9 Bottom Five Poorest Payers Region Sept 19 Change from Aug 19 Northern Ireland 14.8 2.8 East Anglia 13.6 2 North West 13.3 2.1 Yorkshire and Humberside 13 1.2 London 12.8 0.6 Getting Worse Other Service 2.2 Wholesale and retail trade 2.2 Real Estate 2 Transportation and Storage 1.8 Professional and Scientific 1.2 Bottom Five Poorest Payers Sector Sept 19 Change from Aug 19 Mining and Quarrying 21.5 7.1 Business from Home 16.2 -7.6 Business Admin and Support 15 3.5 Energy Supply 14.9 -4.3 IT and Comms 14.6 5.9 Region Getting Better – Getting Worse -3.4 -1.2 2.8 2.3 2.1 2 1.3 1.2 1.1 East Midlands South East Northern Ireland West Midlands North West East Anglia Wales Yorkshire & Humberside South West NORTHERN IRELAND 2.8 DBT NORTH WEST 2.1 DBT YORKSHIRE & HUMBERSIDE 1.2 DBT WALES 1.3 DBT WEST MIDLANDS 2.3 DBT EAST MIDLANDS -3.4 DBT EAST ANGLIA 2 DBT The biggest improvement came from the East Midlands, moving off the bottom of the table following a reduction of 3.4 days. SOUTH WEST 1.1 DBT SOUTH EAST -1.2 DBT The Recognised Standard / www.cicm.com / November 2019 / PAGE 37
Page 1: CREDIT MANAGEMENT CM NOVEMBER 2019
Page 4 and 5: EDITOR’S COLUMN Don’t send your
Page 6 and 7: CMNEWS A round-up of news stories f
Page 8 and 9: NEWS IN BRIEF NEW GLOBAL CHAIRMAN
Page 10 and 11: NEWS IN BRIEF LIQUIDITY RULES NEW
Page 12 and 13: FROM THE CHAIR Proud achievements P
Page 14 and 15: OPINION MODEL NUMBERS Existing fund
Page 16 and 17: INTERVIEW COVER LINES Has the credi
Page 18 and 19: INTERVIEW AUTHOR - Sean Feast FCICM
Page 20 and 21: ADVERTORIAL Lovetts attends FSB rou
Page 22 and 23: OPINION CRASH LANDING The demise of
Page 24 and 25: TOWN AND COUNTRY THE INTELLIGENCE S
Page 26 and 27: OPINION HOUSE CALL The UK is awash
Page 28 and 29: VIEW FROM THE SEA FRONT A (new)wint
Page 30 and 31: ASK THE EXPERTS NULL AND VOID Are y
Page 32 and 33: TABLE BOOKING NOW OPEN Wednesday 5
Page 34 and 35: www.cicm.com ‘‘ Networking, kee
Page 38 and 39: INTERNATIONAL TRADE Monthly round-u
Page 40 and 41: TRADE TALK Keep on trucking Brexit
Page 42 and 43: INTRODUCING OUR CORPORATE PARTNERS
Page 44 and 45: INTRODUCING OUR CORPORATE PARTNERS
Page 46 and 47: EDUCATION/MEMBERSHIP Keep it simple
Page 48 and 49: CAREERS ADVICE Rise of the machines
Page 50 and 51: HR MATTERS ROUNDUP TAKING PART Empl
Page 52 and 53: ADVERTORIAL A DAY IN THE LIFE OF A
Page 54 and 55: NEW AND UPGRADED MEMBERS Do you kno
Page 56 and 57: It is like in the early days of deb
Page 58 and 59: BRANCH NEWS Investigations, insolve
Page 60 and 61: WHAT'S ON A full list of events can
Page 62 and 63: TAKE CONTROL OF YOUR CREDIT CAREER
Page 64 and 65: Cr£ditWho? CICM Directory of Servi
Page 66 and 67: Cr£ditWho? CICM Directory of Servi
Page 68: Taking control of debt HCE Group he

Credit Management November 2019

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