Nurseries

Payment Behaviour Analysis: Nurseries Sector

This report aims to analyse the payment behaviour currently prevalent within the Nurseries sector, utilising a dataset comprising 39 companies. The primary objective is to evaluate the financial reliability of these entities and to assist stakeholders who specialise in supplying this market to better organise their credit control strategies. The central tendency of the data suggests a highly stable environment; the average payment time stands at 28.3 days, closely aligning with a median of 28 days. This proximity between the mean and median indicates a normal distribution where the data centres firmly around the one-month mark, without being heavily skewed by extreme delays. With a standard deviation of 12.9 days, the variability in payment speed is moderate, suggesting that whilst there are differences in how individual companies manage their payables, the overall volatility remains within a predictable range.

A detailed examination of the distribution tiers reveals a payment culture that heavily favours suppliers. Over half of the analysed companies (56.4%) are classified as 'Fast' payers, settling their invoices within 0 to 30 days. When aggregated with the 'Moderate' payers (31-45 days), who constitute 35.9% of the sample, it becomes evident that the vast majority of the sector—over 92%—clears debts within a month and a half. The quartile analysis reinforces this positive outlook: the 25th percentile is recorded at 20 days, whilst the 75th percentile sits at 33 days. An interquartile range of just 13 days implies that the middle 50% of the sector operates with high consistency. Suppliers can, therefore, realise a degree of certainty regarding cash flow, as long delays are not the norm amongst these businesses.

Despite the generally positive trends, it is crucial to scrutinise the outliers and performance breakdowns to fully understand the risk profile. Although 69.9% of invoices are paid within 30 days, the data highlights that 19.2% of payments are technically classified as late. This suggests that whilst the intent to pay quickly exists, administrative bottlenecks or specific payment terms may cause roughly one in five payments to drift beyond the agreed date. The sector demonstrates a clear dichotomy between its most efficient and least efficient actors. The top performers settle accounts in fewer than 20 days, with the fastest payer clearing debts in just 3 days. Conversely, the slowest payer recorded a time of 67 days. However, it is encouraging to note that there are zero companies in the critical 90+ days category, indicating that bad debt risk is minimal.

Geographically, the sample shows a spread across key UK economic hubs, with the South West (8 companies) and West Midlands (6 companies) providing the largest share of the data, followed closely by London and the East of England. For suppliers assessing credit risk, the Nurseries sector appears to be robust and well-organised. The extremely low percentage of payments extending beyond 60 days (6.6%) and the complete absence of critical delays suggest that businesses in this vertical prioritise maintaining good standing with their supply chain. Whilst a minority of payments may face moderate delays, the overall behaviour indicates a healthy, functioning market where liquidity flows efficiently.