Repair

Strategic Payment Analysis: Repair Sector

This report analyses the payment behaviour of 44 companies operating within the Repair sector to determine the prevailing credit risk profile and cash flow dynamics. The data reveals a distinct central tendency, with the average payment time standing at 41.4 days and the median closely aligned at 41 days. This negligible difference between the mean and median suggests a symmetrical distribution, indicating that the sector’s payment practices are relatively stable and not heavily skewed by extreme values. However, with a standard deviation of 15.6 days, creditors must realise that whilst the average is predictable, there remains a notable degree of variability in settlement times. A standard deviation of this magnitude implies that whilst a 41-day cycle is the norm, deviations of two weeks in either direction are commonplace amongst these entities.

When we organise the companies into specific payment bands, a clear hierarchy of payment speed emerges. The largest proportion of businesses, comprising 36.4% of the sample, settles debts within the moderate range of 31 to 45 days. This aligns with the median and reinforces the 41-day benchmark as the sector standard. Conversely, the fast-payment bracket (0-30 days) accounts for 27.3% of the companies analysed. It is important to note the interquartile range (IQR) of 24 days, spanning from the 25th percentile at 30 days to the 75th percentile at 54 days. This statistic is vital for credit control departments, as it delineates the 'normal' zone of expectation; payment terms extending beyond 54 days place a company in the slowest quartile, signalling potential inefficiency or cash flow strain.

Further examination of the performance breakdown highlights both positive discipline and areas of concern. It is reassuring to note that zero companies fall into the critical 90+ day category, suggesting that severe delinquency is not a systemic issue within this sample. However, 18.6% of payments are classified as late, and 13.6% of companies consistently take between 61 and 90 days to settle invoices. The disparity between the fastest payer (6 days) and the slowest (72 days) underlines the necessity for vendor due diligence; distinct sub-groups exist within the sector that either prioritise liquidity or favour delaying tactics.

Geographically, the dataset is heavily weighted towards the South East and London, which collectively account for 19 of the 44 companies. This regional concentration suggests that the observed payment behaviour may be influenced by the economic conditions prevalent in these commercial hubs. In summary, whilst the Repair sector demonstrates a reasonably reliable payment culture centred around a 41-day cycle, suppliers should remain vigilant regarding the 18.5% of entities that routinely exceed 60 days, and factor the 24-day interquartile variance into their cash flow forecasting.