Credit Management July and August 2020

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PAYMENT TRENDS No sign of ‘Normal’ Lockdown continues to affect credit and payment terms. LAST month’s payment performance statistics highlighted the early impact COVID-19 was having in the world of credit, with businesses and credit professionals being forced to adapt their practices, extended terms and introducing new payment plans. As expected, things have only worsened in the last month, with payment terms continuing to rise for the majority of sectors and regions. The average Days Beyond Terms (DBT) figures increased by 2.6 days and 1.9 days respectively across regions and sectors. SECTOR SPOTLIGHT The global lockdown enforced by the pandemic has had a detrimental effect on a number of sectors and industries. With all pubs, bars, hotels and restaurants being forced to close, it is no great surprise to see payment terms increasing across the Hospitality sector. An increase of 8.5 days takes its overall DBT to 20.4 days. Entertainment has been similarly affected – gigs, concerts, festivals and all events with large crowds have had to be postponed. The film, television and music worlds have come to a standstill. An increase of 7.1 days means the Entertainment sector’s overall DBT now stands at 22.2 days. Elsewhere, Wholesale and Retail trade (+7.0 days), Education (+6.4 days) and Real Estate (+6.1 days) have also been particularly affected, with the majority of sectors struggling. International Bodies remain the worst performing sector with an overall DBT of 29.3 days, but it is moving in the right direction once again with a reduction of 12.8 days to payment terms. Financial and Insurance is the new best performing sector with an impressive overall DBT of 5.6 days. REGIONAL SPOTLIGHT At a regional level, things are similarly precarious, with all but one of the 11 regions seeing increases to payment terms. Northern Ireland was the sole region to improve, with a reduction of 2.9 days taking its overall DBT to 13.4 days, meaning it has gone from the worst performing region to the best performing region. The West Midlands and South East have been worst affected, both seeing increases of 5.8 days to payment terms. Wales (+4.1 days), South West (+4.1 days), Yorkshire and Humberside (+3.5 days) and Scotland (+3.4 days) have also struggled. The hope is, that with the gradual easing of lockdown measures and more businesses and industries beginning to return, we may see payment terms gradually starting to reduce across the board. But it’s unlikely to be a quick fix, as we all adapt to the ‘new normal’. Data supplied by Creditsafe Group. Retail trade (+7.0 days), Education (+6.4 days) and Real Estate (+6.1 days) have also been particularly affected, with the majority of sectors struggling. Advancing the credit profession / www.cicm.com / July & August 2020 / PAGE 44
PAYMENT TRENDS Data supplied by the Creditsafe Group Top Five Prompter Payers Region May 20 Change from April 20 Northern Ireland 13.4 -2.9 Yorkshire and Humberside 14.7 3.5 London 15.1 0.1 North West 15.3 0.7 Wales 15.4 4.1 Getting Better International Bodies -12.8 Financial and Insurance -6.8 Transportation and Storage -4.3 Dormant -3.4 Mining and Quarrying -2.4 Water & Waste -1.5 The hope is, that with the gradual easing of lockdown measures and more businesses and industries beginning to return, we may see payment terms gradually starting to reduce across the board. Top Five Prompter Payers Sector May 20 Change from April 20 Financial and Insurance 5.6 -6.8 Health and Social 10.2 2.3 Agriculture, Forestry and Fishing 10.3 1.6 Public Administration 10.8 1.4 Water & Waste 11.8 -1.5 Bottom Five Poorest Payers Region May 20 Change from April 20 South East 18.2 5.8 Scotland 17.1 3.4 West Midlands 16.8 5.8 East Anglia 15.6 3.4 South West 15.6 4.1 Getting Worse Hospitality 8.5 Entertainment 7.1 Wholesale and retail trade 7 Education 6.4 Other service 6.4 Real Estate 6.1 Professional and Scientific 5.4 Construction 4.9 IT and Comms 4.2 Business Admin & Support 3.9 Business from Home 2.9 Manufacturing 2.8 Health & Social 2.3 Energy Supply 1.8 Agriculture, Forestry and Fishing 1.6 Public Administration 1.4 Bottom Five Poorest Payers Sector May 20 Change from April 20 International Bodies 29.3 -12.8 Entertainment 22.2 7.1 Hospitality 20.4 8.5 Professional and Scientific 19.7 5.4 Business Admin & Support 19.6 3.9 Region Getting Better – Getting Worse -2.9 5.8 5.8 4.1 4.1 3.5 3.4 3.4 0.7 0.7 0.1 Northern Ireland South East West Midlands South West Wales Yorkshire and Humberside East Anglia Scotland East Midlands North West London NORTHERN IRELAND -2.9 DBT SOUTH WEST 4.1 DBT WALES 4.1 DBT SCOTLAND 3.4 DBT NORTH WEST 0.7 DBT WEST MIDLANDS 5.8 DBT YORKSHIRE & HUMBERSIDE 3.5 DBT EAST MIDLANDS 0.7 DBT LONDON 0.1 DBT SOUTH EAST 5.8 DBT EAST ANGLIA 3.4 DBT Advancing the credit profession / www.cicm.com / July & August 2020 / PAGE 45
Page 1 and 2: CREDIT MANAGEMENT CM JULY & AUGUST
Page 3 and 4: 14 CARRY ON REGARDLESS Matthew Godb
Page 5 and 6: GET YOUR CREDIT CONTROL SALARY SURV
Page 7 and 8: NEWS ROUNDUP Association adopts pos
Page 9 and 10: THE CICM THINK TANK > THE NEWS IN B
Page 11 and 12: INSOLVENCY PRIME STAKE Insolvency P
Page 13 and 14: INSOLVENCY EXCLUSIVE The Moratorium
Page 15 and 16: ASK THE EXPERTS IN this series, we
Page 17 and 18: COMMERCIAL COLLECTIONS PERSONAL ACC
Page 19 and 20: COMMERCIAL COLLECTIONS AUTHOR - Sea
Page 21 and 22: SECTOR COMMENT DINING OUT Has the r
Page 23 and 24: OPINION AUTHOR - John Ricketts FCIC
Page 25 and 26: LEGAL MATTERS AUTHOR - Peter Walker
Page 27 and 28: VIEW FROM THE SEA FRONT AUTHOR - Da
Page 29 and 30: EDUCATION & MEMBERSHIP Which CICM q
Page 31 and 32: Handy Andes are not to be sniffed a
Page 33 and 34: COUNTRY FOCUS France is our nearest
Page 35 and 36: COUNTRY FOCUS AUTHOR - Adam Bernste
Page 37 and 38: Each of our Corporate Partners is c
Page 39 and 40: CAREERS ADVICE STAYING AHEAD Why op
Page 41 and 42: It needn’t be that hard. Imagine
Page 43: OPINION AUTHOR - Chris Sanders FCIC
Page 47 and 48: OPINION LADIES FIRST A talk at a La
Page 49 and 50: PERSONAL DEVELOPMENT Making Memorie
Page 51 and 52: HR MATTERS Vicarious Living Indiscr
Page 53 and 54: INSPIRE ME IN THE NEW ERA OF WORK Y
Page 55 and 56: More reasons to be a member Make co
Page 57 and 58: FOR ADVERTISING INFORMATION OPTIONS
Page 59 and 60: PAYMENT SOLUTIONS ARE YOU A LEADER

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