South East

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The South East region exhibits an average payment time of 36.35 days, indicating that, on average, companies in this region take slightly over a month to settle their invoices. A little over half (57.39%) of invoices are paid within the preferred 30-day window, leaving a substantial proportion subject to longer payment terms or delays. Furthermore, the late payment rate stands at 25.14%, suggesting a significant incidence of payments being made beyond agreed-upon deadlines. This can place considerable strain on suppliers, particularly small and medium-sized enterprises (SMEs) that rely on timely payments for their cash flow management.

While specific comparative data for other UK regions is unavailable, the South East’s payment performance should be benchmarked against national averages and industry-specific standards. In the context of the broader UK economy, characterised by fluctuating interest rates, rising inflation and ongoing pressures resulting from Brexit, businesses are facing increased operational costs and tighter cash flow. Therefore, effective payment management is paramount. Suppliers operating in the South East should be aware of the potential for delayed payments and incorporate this risk into their financial planning.

Suppliers should undertake due diligence to assess the creditworthiness of their customers in the South East and carefully negotiate payment terms upfront. Building strong relationships with clients and proactively chasing overdue invoices are also vital for mitigating the impact of late payments. Utilising invoice financing or factoring services could provide immediate access to funds and improve cash flow. Furthermore, suppliers should consider incorporating late payment interest charges into their terms and conditions, as permitted under UK law.

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