Motorcycles and Other Road Vehicles

Payment Behaviour Analysis: motorcycles and other road vehicles Sector

This report aims to analyse the current payment behaviour characteristic of the motorcycles and other road vehicles sector, based on a robust sample of 605 companies. The data reveals a payment landscape where the centre of gravity leans towards moderate settlement terms rather than immediate payment. The average payment time stands at 37.5 days, whilst the median is recorded slightly lower at 34 days. This divergence between the mean and the median indicates a positive skew, driven by a minority of slower payers dragging the average upwards. With a standard deviation of 18.8 days, there is a notable degree of variability in how companies within this sector organise their accounts payable, suggesting that credit terms are far from uniform across the industry.

A granular review of the distribution bands highlights that the vast majority of businesses fall within the fast-to-moderate payment brackets. Specifically, 36.7% of companies are categorised as 'Fast' payers (0-30 days), whilst a marginally higher proportion, 37.2%, sit within the 'Moderate' range (31-45 days). Consequently, nearly three-quarters of the sample settle invoices within a standard 45-day window. The interquartile range of 20 days—spanning from the 25th percentile at 26 days to the 75th percentile at 46 days—further reinforces the observation that whilst prompt payment is frequent, suppliers must realise that terms extending towards a month and a half are standard practice amongst a large section of the cohort.

Despite the generally stable averages, the sector is not without credit risk. Performance metrics indicate that 22.9% of payments are classified as late, a figure that necessitates stringent credit control. Whilst 50.6% of obligations are met within 30 days, a significant 13.2% of companies take longer than 60 days to settle debts. The analysis identified critical extremes in behaviour; the slowest payer took an exceptional 235 days to settle, contrasting sharply with the top performers who pay within a single day. Creditors attempting to mitigate risk should specialise their monitoring efforts on the 7.9% of entities falling into the 'Very Slow' category (61-90 days) and the critical 1% that delay payments beyond 90 days, as these represent severe cash flow bottlenecks.

Geographically, the dataset displays a concentration in the South East (132 companies) and the West Midlands (71 companies), followed by London and the North West. This regional weighting suggests that economic activity in these hubs significantly influences the sector's aggregate data. In summary, whilst the motorcycles and other road vehicles sector largely operates within manageable limits—evidenced by the median of 34 days—suppliers should not be complacent. Strategies that favour proactive chasing or early settlement incentives may be essential when dealing with the long tail of late payers identified in this review.