Late payment report exposes working capital strain across receivables

A new accounts receivable report has highlighted the continuing pressure late payments place on business cash flow, with companies still spending significant time chasing overdue invoices.

The report from Chaser found that 92% of businesses say their invoices are typically paid after the due date, while 17% are usually paid more than 30 days late. It also found that 40% of businesses spend six or more hours each week on accounts receivable tasks.

The findings underline how late payment remains a structural working capital problem rather than a temporary administrative issue. For smaller businesses, delayed receipts can restrict hiring, investment and the ability to pay suppliers on time.

The report also points to the operational burden created by manual collections. Companies that fail to follow up consistently on overdue invoices risk leaving a significant share of their overdue book unchased each month.

For receivables finance providers, the data reinforces the importance of visibility over debtor behaviour, invoice quality and collection processes. Late payment risk affects not only cash conversion but also the quality of receivables used to support funding facilities.

The findings also support growing interest in accounts receivable automation. Chaser said businesses using Accounts Receivable automation software are more likely to be paid within two weeks of the invoice due date than those that are not.

The challenge for finance teams is to improve collection discipline without damaging customer relationships. Better follow-up processes, clearer payment communication and stronger data can all help reduce avoidable delays.

For working capital markets, the report shows that late payments remain one of the most persistent constraints on liquidity, particularly for companies with limited access to external finance.