Warehouses (bonded and Non-bonded)

Payment Behaviour Analysis: Warehouses (bonded and non-bonded) Sector

This report presents a detailed analysis of payment practices within the Warehouses (bonded and non-bonded) sector, based on a sample of 23 UK-based companies. Upon reviewing the central tendency metrics, it is evident that the sector operates with a payment culture that leans towards moderate delays rather than immediate settlement. The average payment time stands at 40 days, whilst the median is slightly higher at 42 days. This discrepancy suggests a slight skew in the data, yet the clustering around the 40-day mark indicates a realised standard within the industry. Companies trading with this sector should organise their cash flow expectations around a six-week cycle rather than the standard 30-day term often stipulated in contracts. The standard deviation of 14.3 days further highlights that whilst there is consistency, there is also a notable volatility in settlement times that suppliers must anticipate.

When we analyse the distribution and quartile data, a distinct pattern of behaviour emerges. The sector does not favour rapid settlement, with only one company classified as a 'top performer' (paying in under 20 days) and the fastest payer settling at 8 days. The largest concentration of companies, comprising 39.1% of the sample, falls into the 'Slow' category (46-60 days). Furthermore, the interquartile range—spanning from 28 to 54 days—demonstrates that the middle 50% of companies possess a wide variance in their administrative processing speeds. Consequently, credit controllers focusing on this sector must realise that payment receipts spanning between four to eight weeks are the norm, not the exception. Amongst the sample, the split between 'Fast' (0-30 days) and 'Moderate' (31-45 days) is evenly balanced at 30.4% each, indicating that roughly two-thirds of the sector manages to settle debts within a respectable, albeit not immediate, timeframe.

Despite the tendency towards slower payments, the risk profile of the Warehouses (bonded and non-bonded) sector appears relatively stable. A critical finding in this analysis is the complete absence of companies in the 'Very Slow' (61-90 days) or 'Critical' (90+ days) categories. With the slowest payer capping out at 59 days and no poor performers exceeding the 90-day threshold, the risk of bad debt or severe delinquency appears minimal. However, with 28.6% of payments classified as late and 16.7% of invoices paid over 60 days, suppliers may face friction costs associated with chasing payments. The data suggests that whilst companies in this sector may stretch terms to manage their own working capital, they generally honour their obligations before the two-month mark.

Geographically, the sample displays a bias towards the North West, which accounts for the largest cluster of companies (5), followed closely by the East of England (4). Specialising in regional comparisons might reveal subtler nuances, but currently, the data suggests a national trend of reliability tempered by slowness. In summary, the Warehouses (bonded and non-bonded) sector presents a profile of low credit risk but high administrative drag. Suppliers are advised to centre their credit control strategies on proactive reminders shortly after the 30-day mark, acknowledging that whilst payment is highly likely, it will typically arrive closer to the 45-day threshold.