Supplier On-Time Payment % measures the proportion of invoices settled within agreed terms, reflecting operational efficiency and effective cash management in property development finance UK. High on-time payment rates help maintain strong relationships with contractors and suppliers, reduce risk of project delays, and support smoother working capital cycles. Calculated as the number of invoices paid on time divided by total invoices in a period, multiplied by 100, this metric is critical for UK property developers to monitor cash conversion and control overheads, ensuring reliable supply chain performance while optimising financial planning for development projects.
This sits beneath Cash Conversion, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Retention Release Lag, as both are closely related measures used to assess similar aspects of performance or risk.
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