North West

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Payment practices in the North West region present a concerning picture, indicating significant challenges for suppliers. The average payment time of 6122.13 days is extraordinarily high and almost certainly an outlier, implying a data error or anomaly within the sample. Assuming this to be a skewing factor, we can still see the underlying issue within the percentage paid within 30 days, which stands at only 52.15%. This suggests that nearly half of invoices are paid beyond the standard 30-day term. Furthermore, the late payment rate of 26.82% reinforces this issue, demonstrating that a substantial proportion of payments are being made well beyond agreed terms.

Without comparable data from other UK regions, it's difficult to provide a precise comparative assessment. However, a high late payment rate such as the North West's can be expected to lag behind average, especially within economic downturns. In the current economic climate, characterised by high inflation and potential recessionary pressures, businesses may be struggling with cash flow, leading to delayed payments. The North West, with its mix of manufacturing, services, and retail sectors, might be particularly vulnerable if certain sectors are experiencing contraction or supply chain disruptions.

For suppliers trading with companies in the North West, it is crucial to exercise caution. Due diligence on potential clients' payment history is essential. Suppliers should implement robust credit control procedures, including clear payment terms, prompt invoicing, and proactive chasing of overdue payments. They may also want to consider factoring or invoice discounting to mitigate the risk of late payments and improve their own cash flow.

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