Smoking and Vaping

**

The Smoking and Vaping sector in the UK exhibits an average payment time of 41.75 days, indicating that companies in this sector typically take over a month to settle invoices. Furthermore, only 36.75% of payments are made within the standard 30-day window, suggesting a significant proportion of suppliers experience payment delays. A late payment rate of 15% further corroborates this, showing a tangible risk of invoices being paid beyond agreed terms. This data suggests a potential issue with timely payment practices within the sector.

Compared to other sectors in the UK, where average payment times can vary significantly, the Smoking and Vaping sector's performance falls within a somewhat middling range. While not the slowest, it is noticeably less prompt than sectors known for efficient payment practices, such as the utilities or pharmaceuticals. The trend clearly indicates a need for suppliers to actively manage their credit control procedures and maintain a robust follow-up process to ensure timely payment. This is particularly important given the challenges many small and medium-sized enterprises (SMEs) face in absorbing late payments.

For suppliers operating within or considering entering the Smoking and Vaping sector, it is crucial to recognise the prevailing payment landscape. An awareness of the relatively slow payment times and the considerable late payment rate should influence their approach to contract negotiation and risk assessment. Suppliers should ensure that their pricing strategy adequately factors in the potential for delayed payments, mitigating the impact on their working capital and profitability.

**