Landscaping and Tree Surgery

Payment Behaviour Analysis: landscaping and tree surgery Sector

Upon analysing the financial data of 17 prominent companies within the landscaping and tree surgery sector, a distinct pattern of payment behaviour emerges, characterised by moderate delays and significant volatility. The dataset reveals a weighted average payment time of 51.3 days, a figure that sits notably higher than the median of 43 days. This discrepancy between the mean and the median suggests a positive skew in the distribution, indicating that whilst the majority of firms settle debts within a six-week window, a minority of poor performers are disproportionately affecting the sector’s overall average. Suppliers trading within this industry must realise that the standard payment term is rarely adhered to; with zero companies achieving 'top performer' status (under 20 days) and the fastest payer taking 26 days, cash flow expectations should be adjusted to accommodate a baseline wait of at least 43 to 55 days.

The distribution of payment speeds further highlights the inconsistency ingrained in this sector’s practices. The standard deviation of 26.2 days is substantial relative to the median, pointing to a lack of standardisation in accounts payable processes amongst these firms. The largest concentration of companies (35.3%) falls into the 'Moderate' band of 31-45 days, effectively forming the centre of the distribution curve. However, this is counterbalanced by a worrying tail of slower payers; nearly a quarter (23.5%) of the sample takes between 46 and 60 days to settle invoices, and a combined 23.5% fall into the 'Very Slow' or 'Critical' categories. Consequently, the interquartile range of 22 days suggests that suppliers face considerable uncertainty, as payment timing can fluctuate wildly depending on the specific client.

A granular review of the performance breakdown reveals that only 36.6% of invoices are paid within the standard 30-day window, whilst a staggering 24.1% of payments are classified as late. This level of late payment behaviour poses a tangible risk to the supply chain, particularly for smaller vendors lacking robust cash reserves. The data identifies extreme outliers that warrant caution; specifically, one company exhibits a critical payment period exceeding 90 days, with the slowest recorded payer taking an excessive 132 days to settle debts. This severe outlier significantly distorts the average and serves as a warning for credit controllers to rigorously vet potential clients in this sector before extending favourable credit terms.

Finally, the geographic spread of the sample shows a concentration of activity in the West Midlands (4 companies), followed by an even distribution amongst London, the East of England, and the South East. Whilst regional location does not strictly dictate payment culture, the heavy weighting in the West Midlands suggests that regional economic factors could influence the broader sector trends. In summary, the landscaping and tree surgery sector presents a high-risk profile for credit managers. The absence of rapid payers, combined with a high probability of payments extending beyond 60 days, necessitates a proactive approach to credit control. Stakeholders should prioritise strict payment enforcement and consider the likelihood of delays when forecasting cash flow.