Application Software

Based on a robust dataset comprising 260 companies, we have conducted a detailed review to analyse the current payment behaviour within the Application software sector. The data indicates a remarkably stable and efficient payment culture, characterised by a high degree of reliability. The central tendency metrics paint a positive picture: the average payment time stands at 28.4 days, closely aligned with the median of 27 days. This proximity between the mean and the median suggests that the sector’s performance is not heavily skewed by extreme outliers, indicating a consistent standard of practice across the industry. Furthermore, with a standard deviation of 14 days, there is a predictable tightness to the payment schedules, suggesting that financial controllers within this sector generally organise their ledgers with a high degree of discipline.

When we examine the distribution behaviour in greater detail, it becomes evident that the Application software sector is heavily skewed in favour of rapid settlement. A significant majority—60.0% of the companies analysed—settle their invoices within the 0-30 day window, which is traditionally categorised as 'Fast'. Whilst this is encouraging, the quartile analysis offers further insight into this efficiency; the 25th percentile sits at a remarkably low 19 days, meaning a quarter of the sector pays suppliers in under three weeks. The interquartile range of 16 days further demonstrates that the vast majority of activity is clustered around standard commercial terms. It is also important to realise that there are currently zero companies in the critical 90+ day bracket, a statistic that speaks volumes about the solvency and liquidity health of the sector.

However, whilst the headline figures are positive, a more granular review reveals underlying friction points. Despite the prompt averages, 23% of payments are classified as 'late', likely missing strict 30-day contractual deadlines. Although only 7.7% of companies fall into the 'Slow' category (46-60 days) and a mere 2.3% into the 'Very Slow' category (61-90 days), the existence of a 90-day slowest payer—contrasted against a fastest payer of just 1 day—shows a disparity in operational efficiency. Businesses trading within this sector must realise that whilst the risk of total non-payment is statistically negligible, nearly one in four invoices may still encounter administrative delays, requiring robust credit control procedures.

Geographically, the sector's financial activity is overwhelmingly centred in the South of England. The data highlights a strong regional concentration, with London (129 companies) and the South East (51 companies) accounting for the vast majority of the sample. This geographic bias suggests that the payment behaviour observed is heavily influenced by the corporate practices prevalent in the capital. Amongst the other regions, representation is significantly lower, with the East of England, Yorkshire and The Humber, and the West Midlands combined representing a smaller fraction of the dataset. Consequently, stakeholders should view these payment practices as reflective of a London-centric market, whilst keeping in mind that regional variations outside this centre of gravity might present slightly different risk profiles.