Environmental Consultancy

Based on the comprehensive dataset provided, this report aims to analyse the payment behaviour within the Environmental consultancy sector. The sample, comprising 12 companies predominantly located in London and the South East, presents a generally favourable picture of financial health, though distinct risks remain for suppliers. The central tendency metrics suggest a sector that largely adheres to standard commercial terms; the average payment time stands at 30.7 days, whilst the median is slightly quicker at 28 days. This median figure is particularly encouraging, as it sits comfortably below the traditional 30-day payment threshold, indicating that the majority of businesses in this sample prioritise prompt settlement. However, the standard deviation of 14.4 days signals a degree of volatility, suggesting that whilst the average is healthy, credit terms are not applied uniformly across the board.

When we organise the companies by payment speed distribution, a clear and somewhat polarised pattern emerges. The sector appears to specialise in rapid processing, with a significant 75.0% of companies classified as 'Fast' payers (0-30 days). Remarkably, there is a complete absence of companies in the 'Moderate' (31-45 days) category. The data reveals a distinct gap, jumping immediately to the 'Slow' (46-60 days) and 'Very Slow' (61-90 days) categories, which account for 16.7% and 8.3% of the sample respectively. This 'hollow middle' suggests a binary behaviour pattern: companies either possess the liquidity and administrative efficiency to pay within the month, or they delay payments significantly. There appears to be little middle ground, which is a vital insight for credit controllers when setting expectations.

A deeper review of the performance breakdown and quartile data allows us to realise the specific risks associated with the sector. The interquartile range of 22 days—spanning from a 25th percentile of 24 days to a 75th percentile of 46 days—highlights the disparity between the best and worst performers. Whilst 71.4% of invoices are settled within 30 days, the late payment rate remains noteworthy at 25.3%. This implies that roughly one in four invoices will exceed agreed terms, presenting a cash flow risk to suppliers. The outliers further emphasise this variance; the fastest payer settled accounts in just 7 days, whereas the slowest payer took 65 days. Suppliers must be aware that once a payment misses the 30-day window, the data suggests it is unlikely to arrive shortly thereafter, given the lack of activity in the 31-45 day band.

Geographically, the analysis is heavily weighted towards the capital, with 8 of the 12 companies based in London. This regional bias may skew the results to favour the payment practices common in metropolitan hubs, potentially reflecting higher liquidity or more sophisticated accounts payable systems found in the capital's business centre. In summary, whilst the Environmental consultancy sector displays robust headline figures, suppliers should not become complacent. The data indicates that payment behaviour is generally excellent, but when delays occur, they tend to be substantial. Credit teams should focus their efforts on the 30-day mark; if an invoice remains unpaid at this point, immediate escalation is advisable to avoid drifting into the 60-day territory common amongst the sector's slower payers.