Product Rental and Hire

Comprehensive Payment Behaviour Analysis: Product rental and hire Sector

This report aims to analyse the current payment behaviour prevalent within the Product rental and hire sector, drawing upon a robust dataset of 58 companies. The analysis reveals a relatively stable and predictable payment culture, characterised by a strong adherence to standard commercial terms. The centre of the distribution is defined by an average payment time of 36.1 days, which aligns closely with the median of 35 days. This close proximity between the mean and the median suggests a normal distribution curve without significant skewing from extreme outliers. Whilst the standard deviation of 13.4 days indicates some variance in settlement speeds, the general trend points towards a disciplined operational norm where businesses appear well-organised in their accounts payable processes, generally targeting a net-30 to net-45 day settlement window.

A deeper examination of the distribution bands highlights that the vast majority of entities favour moderate to fast payment terms. Specifically, the 'Moderate' category (31–45 days) represents the largest single grouping at 37.9%, closely followed by the 'Fast' category (0–30 days) at 36.2%. Consequently, nearly three-quarters of the sample settle their invoices within a month and a half. The interquartile range further supports this observation, spanning 19 days from the 25th percentile at 27 days to the 75th percentile at 46 days. Suppliers dealing with this sector should realise that receiving payment within the 35 to 45-day window is the most statistically probable outcome. Notably, the 'Very Slow' category accounts for a negligible 3.4% of the sample, indicating that prolonged delays are the exception rather than the rule amongst these businesses.

In terms of strict performance metrics and risk assessment, the sector demonstrates creditable financial discipline. Over half of the companies analysed (50.6%) settle their obligations within 30 days, a strong indicator of healthy liquidity. Whilst the data indicates a late payment rate of 21.7%, the severity of this delinquency is low. There were zero companies recorded in the critical 90+ day category, and the slowest payer capped out at 63 days. This suggests that even when payments slip beyond preferred terms, they are generally resolved before becoming bad debt. Companies that specialise in credit management for this sector should note the five top performers settling in under 20 days, with the fastest payer achieving a 7-day turnaround, setting a high benchmark for the industry.

Finally, the geographic footprint of the sample is heavily weighted towards the South East (13 companies) and London (9 companies), alongside a strong showing from the East of England (10 companies). This regional concentration may influence the overarching payment behaviour, reflecting the specific economic conditions of these commercial hubs. In summary, the Product rental and hire sector presents a low-to-moderate risk profile. With no critical outliers and a tight clustering of payments around the 35-day mark, the sector appears financially robust. Suppliers should expect reliable payment flows, whilst factoring in a necessary administrative buffer of approximately one week beyond the standard 30-day term to accommodate the sector's median processing time.