North East

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The North East region demonstrates moderately slow payment practices. With an average payment time of 42.86 days, businesses in this area generally take longer to settle invoices than the commonly desired 30-day window. Furthermore, less than half (46.66%) of invoices are paid within this benchmark timeframe, suggesting a substantial proportion of businesses are exceeding it. Coupled with a late payment rate of 23.26%, it's evident that a significant number of suppliers in the North East experience delayed payments. Unfortunately, without comparative data from other UK regions, it's difficult to contextualise the North East's performance relative to the national average. However, late payments, particularly to smaller businesses, contribute to cash flow problems and can hinder growth potential in any region.

Given the region's historical reliance on specific industries and its ongoing efforts to diversify its economy, suppliers engaging with businesses in the North East should exercise due diligence. Before extending credit, understanding a client's payment history and financial stability is crucial. It's advisable to negotiate clear payment terms, perhaps even incentivising early payment with discounts or implementing late payment penalties within the contract. Suppliers should also be prepared to actively chase invoices and consider utilising credit insurance to mitigate the risk of non-payment. Effective cash flow management will be critical to navigating these payment practices effectively.

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