Fabrics and Textiles

Payment Behaviour Analysis: Fabrics and textiles Sector

Upon analysing the payment behaviour within the Fabrics and textiles sector, based on a sample of 11 organisations, the data indicates a payment culture that tends towards the moderate-to-slow end of the spectrum. The sector demonstrates an average payment time of 44.2 days; however, the median payment time stands slightly higher at 47 days. This divergence suggests that the centre of gravity for this dataset leans heavily towards a six-to-seven-week settlement period. With a standard deviation of 12 days, there is a moderate level of consistency in how these companies manage their creditors, implying that suppliers can generally forecast payment schedules with a reasonable degree of accuracy, albeit without the expectation of prompt settlement.

A closer examination of the distribution reveals that swift payment practices are exceptionally rare amongst the sampled companies. Only one organisation (9.1%) is classified as a 'Fast' payer (0-30 days), whilst the largest concentration of companies—comprising 45.5% of the sample—resides within the 'Slow' category of 46-60 days. The quartile analysis further reinforces this observation of delayed settlement; the interquartile range is relatively narrow at 14 days, with the 25th percentile at 34 days and the 75th percentile at 48 days. Notably, the proximity of the 75th percentile (48 days) to the median (47 days) indicates a significant clustering of firms that structure their payment runs just under the 50-day mark, suggesting a systemic standard within the sector rather than isolated inefficiency.

regarding the specific breakdown of invoice performance, the data does not favour suppliers reliant on rapid cash flow. Whilst 35.4% of invoices are settled within 30 days, a significant proportion (44.9%) are cleared between 31 and 60 days. More concerning for supply chain stability is the realisation that 39.4% of payments are classified as late. This high rate of delinquency suggests that while companies do eventually pay, they frequently miss agreed terms. Suppliers must therefore organise their credit control procedures robustly, as nearly one-fifth (19.7%) of invoices remain outstanding for over 60 days.

Finally, whilst the sector demonstrates sluggish tendencies, it importantly avoids critical extremes. There were no companies recorded in the 'Critical' bracket (90+ days), with the slowest payer recorded at 70 days and the fastest at 22 days. This absence of extreme delinquency provides some reassurance regarding bad debt risk, even if working capital cycles are prolonged. Geographically, the sample is heavily weighted towards Northern England, particularly Yorkshire and The Humber, which may influence regional benchmarking. In summary, entities looking to trade with the Fabrics and textiles sector should specialise in proactive credit management, anticipating a standard settlement cycle of approximately 45 to 50 days.