Late payments cost small and mid-sized businesses as much as USD3 billion globally, according to a new economic report from Sage.
With 1 in 10 invoices failing to be paid on time, the study reports up to 10% of payments are either never paid or paid so late that businesses are forced to write them off as bad debt.
Undertaken by Plum Consulting, the research analyzed responses from over 3,000 business builders to look at the effects of late payments on SMBs.
"The Domino Effect: The Impact of Late Payments" highlights that almost 40% of small & medium businesses experience direct negative impacts from late payments. As a consequence of late payments, 16% in the US say they will struggle to pay bonuses around the festive period, and nearly 25% expect an impact on staff pay.
