East Midlands

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The East Midlands exhibits an average payment time of 40.89 days, indicating that companies in this region typically take longer than the standard 30-day payment term. A concerning 28.72% of payments are late, further highlighting potential cash flow issues for suppliers. Less than half (46.83%) of invoices are settled within 30 days, suggesting a considerable proportion of businesses are operating outside established payment norms. While benchmarking data across all UK regions is unavailable, these metrics generally position the East Midlands as potentially having slower payment cycles compared to regions with a stronger focus on prompt payment initiatives.

Economically, the East Midlands benefits from a diverse industrial base, including manufacturing, logistics, and services. However, this diversification doesn't guarantee uniform payment practices. Smaller businesses, which form a significant part of the regional economy, may struggle with cash flow, impacting their ability to pay suppliers on time. Furthermore, external economic pressures, such as fluctuating raw material costs or Brexit-related uncertainties, can exacerbate payment delays.

For suppliers trading in the East Midlands, it's crucial to be aware of the potentially extended payment terms and relatively high late payment rate. Incorporating realistic payment expectations into pricing and contract negotiations is essential. Thorough credit checks and robust credit management procedures are advisable to mitigate the risk of delayed or non-payment.

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