Fashion's Payment Performance: Slight Improvement of 3.6 Points Between 2020 and 2021

The Comparison

• 2020: A study of 33 fashion companies revealed an average payment performance score of 59.6 out of 100. This indicates significant room for improvement in timely payment practices across the sector.
• 2021: A similar analysis of 34 companies showed a modest increase to an average score of 63.2 out of 100. While representing progress, this still points to ongoing challenges in maintaining prompt payment schedules.

What This Means

The 3.6-point increase, although positive, is a relatively small shift, suggesting that the fashion industry continues to grapple with issues impacting payment timeliness. This could reflect persistent supply chain complexities, fluctuating consumer demand, or internal operational inefficiencies impacting financial flows. Companies struggling with late payments can use a late payment calculator to estimate the potential financial impact.

Fashion payment performance moved from 59.6 (2020) to 63.2 (2021).