Interior Design

Sector Payment Analysis: Interior design

This report analyses the financial conduct and payment behaviour within the Interior design sector, utilising a dataset of 14 companies to evaluate the current liquidity landscape. The data indicates a distinct trend towards moderate payment terms, with the sector demonstrating a relatively cohesive performance rather than erratic disparity. The central tendency metrics reveal an average payment time of 34.7 days, whilst the median sits slightly higher at 38 days. This divergence suggests a slight skew caused by a minority of faster-paying entities, yet the proximity of these two figures implies a stable operational standard. With a standard deviation of only 7.5 days, it is evident that the sector does not suffer from extreme volatility; companies within this bracket largely adhere to a predictable schedule, minimising the uncertainty often found in more fragmented industries.

A closer examination of the distribution data highlights that the majority of organisations are clustered within the 'moderate' band. Specifically, 57.1% of the analysed companies settle their accounts between 31 and 45 days, whilst 35.7% manage to pay within the fast 0-30 day window. Notably, the interquartile range—spanning from 29 days (25th percentile) to 41 days (75th percentile)—is remarkably narrow at just 12 days. This reinforces the observation that payment behaviour in this sector is highly standardised. There is a distinct absence of extreme delinquency; amongst the sample group, zero companies fell into the critical 90+ day category, and indeed, none exceeded 60 days significantly, with the slowest payer recording a 48-day cycle. This consistency is favourable for suppliers seeking reliable cash flow forecasting.

Despite the stability in company-level averages, the transactional performance breakdown reveals a nuanced picture regarding invoice volume. Whilst the median company payment time is 38 days, 58.1% of actual invoices are paid within 30 days. This discrepancy suggests that companies may be prioritising smaller volume invoices for quicker settlement to maintain supplier goodwill, whilst larger sums are held closer to the 38-day median. However, it is crucial to realise that 24.9% of payments are classified as 'late'. While no company is critically delinquent, a quarter of payments missing their agreed terms indicates a systemic culture of stretching credit limits slightly beyond agreed dates, a common practice in sectors managing tight working capital.

Geographically, the sample is heavily centred around London (6 companies) and the East of England (4 companies), with sparse representation in Northern Ireland, Tayside, and the South East. This concentration suggests that the payment culture described may be influenced by the operational tempos of the capital and its surrounding economic hubs. In summary, the Interior design sector displays a disciplined, albeit conservative, approach to remuneration. Suppliers should anticipate a payment cycle averaging five to six weeks. Whilst the risk of severe bad debt appears minimal given the absence of outliers beyond 48 days, stakeholders should remain cognisant of the moderate likelihood of minor delays, as indicated by the nearly 25% late payment rate.