Fishmongers and Greengrocers

Payment Behaviour Analysis: fishmongers and greengrocers

This report analyses the payment behaviour within the fishmongers and greengrocers sector, drawing upon a comprehensive dataset of eight companies. The primary objective is to evaluate the credit risk and liquidity implications for suppliers engaging with this industry. The data reveals a relatively stable payment culture, characterised by an average payment time of 37.4 days. It is crucial to note, however, that the median payment time stands slightly higher at 40 days. This discrepancy suggests that whilst some organisations settle their invoices promptly, the central tendency leans towards a standard commercial credit period of roughly six weeks. With a standard deviation of 10.6 days, the sector displays a coherent consistency; there is limited volatility in settlement speeds, suggesting that suppliers can anticipate a reasonably predictable cash flow when engaging with companies in this industry.

A more granular look at the distribution highlights that the sector is evenly split between 'Fast' and 'Moderate' payers. Specifically, 37.5% of the analysed entities settle accounts within 30 days, whilst an identical proportion falls into the 31-45 day bracket. The remaining 25.0% operate within a 46-60 day window. Notably, there are no recorded instances of 'Very Slow' or 'Critical' payment terms (exceeding 60 or 90 days respectively), which is a positive indicator of financial health. The interquartile range of 17 days—spanning from the 25th percentile at 30 days to the 75th percentile at 47 days—reinforces the view that extreme delays are not characteristic of this market. Consequently, credit controllers can largely expect receipts to fall within this concentrated timeframe, allowing for more accurate cash flow forecasting.

When examining the specific performance breakdown of invoices, 43.3% are settled within the standard 30-day term, demonstrating a strong inclination towards promptness amongst the better-performing entities. However, one must realise that despite no individual company averaging over 60 days at a firm-wide level, 16.4% of actual invoices are paid beyond this threshold. Furthermore, late payments account for 10.1% of transactions. This indicates that whilst the systemic behaviour is sound, administrative friction or dispute-related delays still affect a minority of payments. The range of performance varies from the fastest payer settling in 25 days to the slowest at 57 days. The total absence of outliers beyond 90 days suggests that whilst delays occur, the risk of bad debt or severe delinquency remains low.

Geographically, the sample displays a slight concentration in the East of England, which accounts for three of the companies analysed, followed by Yorkshire and The Humber with two. The remaining organisations are distributed across London, the West Midlands, and Northern Ireland, suggesting a broad geographic spread despite the small sample size. In summary, the fishmongers and greengrocers sector exhibits a disciplined approach to accounts payable. Whilst settlement is not immediate, the payment behaviour is reliable. Suppliers should organise their credit control procedures to favour a 40-day cycle, remaining confident that the vast majority of invoices will be honoured within a reasonable commercial timeframe.