Credit Management March 2020

PAYMENT TRENDS
Local Heroes
The latest monthly B2B payment performance
statistics show signs of regional improvements.
FOLLOWING on from a number of
increases across the board, the
latest payment statistics do at least
show some better performances,
particularly at a regional level. The
average Days Beyond Terms (DBT)
figures across regions reduced by 0.2 days, while
sectors increased by 0.6 days.
SECTOR SPOTLIGHT
Despite the overall increase to payment terms, 10
of the 22 sectors monitored did make reductions
and deserve to be acknowledged. The Business
from Home sector saw the biggest improvement,
reducing its DBT by 5.3 days. Health & Social (-3.9
days), Entertainment (-3.4 days) and Hospitality
(-3.4 days) also performed well.
However, a number of sectors have struggled,
and in some cases struggled badly. It has been
particularly tough for the Energy Supply sector,
with its DBT increasing by an alarming 7.7 days.
Similarly moving in the wrong direction is the
Mining and Quarrying sector, an increase of 6.1
days means it is now the worst performing sector
with an overall DBT of 23.2 days. Transportation
and Storage (+5 days), International Bodies (+4.7
days) and Water & Waste (+3.3 days) also struggled.
REGIONAL SPOTLIGHT
The regional standings show some signs
of improvement, with seven of the 11
regions making reductions to payment terms.
After languishing at the bottom of the table
for a number of months, Northern Ireland is
moving in the right direction again, reducing
its DBT by 4.9 days and making it the most
improved region.
In terms of the best performing region,
Wales and the South West are now level at
the top, each with an overall DBT of 11.4 days
following reductions of 2.1 days and 1.5 days
respectively. Elsewhere, South East (-2.6 days),
London (-1.6 days) and East Midlands (-0.7
days) also made improvements.
At the opposite end of the standings, East
Anglia has slipped to the worst performing
region following a further increase of 1.1
days, leaving its overall DBT at 18 days. It
was also a hugely disappointing month for
Scotland, sliding down the rankings following
a whopping increase of 6.9 days to its payment
terms.
The Business from
Home sector saw the
biggest improvement,
reducing its DBT by 5.3
days.
Advancing the credit profession / www.cicm.com / March 2020 / PAGE 64