CM September 2020

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PAYMENT TRENDS Recovery Room Some signs of improvement across regions and sectors are now apparent. AUTHOR – Rob Howard COVID-19 has had a significant impact in the world of credit, affecting all industries and businesses, leading to a continual rise in payment terms over the past few months. The latest figures, however, do show some improvements, with a number of reductions across the board. Whether it’s the start of the recovery, or just the calm before the storm though, we’ll have to wait and see. The average Days Beyond Terms (DBT) figures reduced by 0.2 days and 0.7 days across regions and sectors respectively. SECTOR SPOTLIGHT Although there haven’t been any dramatic or drastic changes, it is, at least, good to see the majority of sectors starting to move back in the right direction, with 16 of the 22 sectors recorded reducing payment terms. The Financial and Insurance sector continues to perform best, and well ahead of the rest, with a further reduction of 4.0 days taking its overall DBT to an impressive 4.7 days. Elsewhere, Business Admin & Support (-3.3 days), IT and Comms (-2.7 days), Entertainment (-2.5 days) and Real Estate (-2.4 days) also made steady improvements. At the other end of the scale, it has been a tough month for the Business from Home and Transportation and Storage sectors, with increases of 5.8 days and 5.4 days respectively. Despite a reduction of 2.0 days to its payment terms, Mining and Quarrying remains the worst performing sector with an overall DBT of 24.3 days. REGIONAL SPOTLIGHT The regional standings also provide some encouragement, with seven of the 11 regions making reductions to payment terms. The biggest improvement came in the South West, with a reduction of 4.2 days taking its overall DBT to 14.2 days, making it the new best performing region. Elsewhere, the improvements were steady if not spectacular, with Wales (-1.9 days), London (-1.6 days), East Anglia (-1.6 days), and Yorkshire and Humberside (-1.2 days) all moving in the right direction. Northern Ireland remains the worst performing region following a further increase of 3.9 days taking its overall DBT to 21.1 days. However, further increases for both the East and West Midlands mean they are not a million miles behind, with overall DBT’s of 19.2 days and 18.5 days respectively. Data supplied by Creditsafe Group. The latest figures, however, do show some improvements, with a number of reductions across the board. Whether it’s the start of the recovery, or just the calm before the storm. Advancing the credit profession / www.cicm.com / September 2020 / PAGE 48
PAYMENT TRENDS Data supplied by the Creditsafe Group Top Five Prompter Payers Region Jul 20 Change from Jun 20 South West 14.2 -4.2 Wales 15 -1.9 East Anglia 15.5 -1.6 London 15.6 -1.6 Yorkshire and Humberside 15.8 -1.2 Bottom Five Poorest Payers Region Jul 20 Change from Jun 20 Northern Ireland 21.1 3.9 East Midlands 19.2 0.5 West Midlands 18.5 1.9 Scotland 17.4 2.8 North West 17.1 -1.2 Getting Worse Business from Home 5.8 Transportation and Storage 5.4 Agriculture, Forestry and Fishing 2.5 Health & Social 1.6 Dormant 0.6 Getting Better Financial and Insurance -4 Business Admin & Support -3.3 IT and Comms -2.7 Entertainment -2.5 Real Estate -2.4 Construction -2.3 Manufacturing -2.2 Mining and Quarrying -2 Energy Supply -1.9 Top Five Prompter Payers Sector Feb 20 Change from Jan 20 Financial and Insurance 4.7 -4 Public Administration 8.7 -1.8 Health & Social 11.3 1.6 Wholesale and retail trade 12.7 -1.9 Education 13.6 -0.9 Bottom Five Poorest Payers Sector Feb 20 Change from Jan 20 Mining and Quarrying 24.3 -2 Entertainment 22.7 -2.5 Transportation and Storage 22.1 5.4 Business from Home 21.6 5.8 Energy Supply 21.6 -1.9 Wholesale and retail trade -1.9 Public Administration -1.8 Water and Waste -1.4 International Bodies -1.3 Other Service -1.1 Education -0.9 Professional and Scientific -0.1 SCOTLAND 2.8 DBT Region Getting Better – Getting Worse -4.2 -1.9 -1.6 -1.6 -1.2 -1.2 -0.5 3.9 2.8 1.9 0.5 South West Wales East Anglia London Yorkshire and Humberside North West South East Northern Ireland Scotland West Midlands East Midlands NORTHERN IRELAND 3.9 DBT SOUTH WEST -4.2 DBT WALES -1.9 DBT NORTH WEST -1.2 DBT WEST MIDLANDS 1.9 DBT YORKSHIRE & HUMBERSIDE -1.2 DBT EAST MIDLANDS 0.5 DBT LONDON -1.6 DBT SOUTH EAST -0.5 DBT EAST ANGLIA -1.6 DBT Advancing the credit profession / www.cicm.com / September 2020 / PAGE 49
Page 1 and 2: CREDIT MANAGEMENT CM SEPTEMBER 2020
Page 3 and 4: SEPTEMBER 2020 www.cicm.com CONTENT
Page 5 and 6: Advancing the credit profession / w
Page 7 and 8: NEWS ROUNDUP CICM in new TV venture
Page 9 and 10: PHILLIPS & Cohen Associates, the le
Page 12 and 13: presents
Page 14 and 15: % 0,6 0,5 Pre- crisis Late During p
Page 16 and 17: Level 4 Apprenticeship Counter Frau
Page 18 and 19: OPINION START THE REVOLUTION Invoic
Page 20 and 21: Let us show you why our years of Hi
Page 22 and 23: LEGAL MATTERS SPARK OUT A landmark
Page 24 and 25: COUNTRY FOCUS Germany is still the
Page 26 and 27: COUNTRY FOCUS AUTHOR - Adam Bernste
Page 28 and 29: would you love an easy way to speed
Page 30 and 31: INTERNATIONAL TRADE Monthly round-u
Page 32 and 33: ADVISORY COUNCIL Shaping the future
Page 34 and 35: NEW FEATURE PANEL BASHERS Understan
Page 36 and 37: Appointment | Credit Academy Traine
Page 38 and 39: Advancing the credit profession / w
Page 40 and 41: INTRODUCING OUR CORPORATE PARTNERS
Page 42 and 43: INTRODUCING OUR CORPORATE PARTNERS
Page 44 and 45: INTERVIEW SMALL TALK Satago CEO Sin
Page 46 and 47: INTERVIEW AUTHOR - Sean Feast FCICM
Page 50 and 51: CICM MEMBER EXCLUSIVE Your CICM lap
Page 52 and 53: OBITUARY Paul Mudge - a life fully
Page 54 and 55: Streamline your customer onboarding
Page 56 and 57: TAKE CONTROL OF YOUR CREDIT CAREER
Page 58 and 59: www.tcmgroup.com Probably thebest d
Page 60 and 61: Cr£ditWho? CICM Directory of Servi
Page 62 and 63: Cr£ditWho? CICM Directory of Servi
Page 64: Celebrating forty years of deliveri

CM September 2020

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