Did you know that 47% of suppliers are paid late, some by as much as 45 days? We were shocked, too.
We surveyed more than 3,500 suppliers on our network to find out their cash flow needs and how early payment programs can help.
The results were nothing short of astounding: We found that nearly half of suppliers are paid late, that the late payments averaged 9.3 days, and that 25 percent of respondents waited more than 40 days to be paid.
In The San Francisco Business Times, Mark Calvey wrote, “Taulia's survey also found that suppliers have a strong desire to have the option to be paid early; regularly accept acceleration of all invoices, in exchange for a small discount; and some suppliers accept early payments in order to meet seasonal cash-flow needs.”
Calvey also noted the irony of how the outdated system of business-to-business payments work.
“Ironically, the slow pays and unearned discounts mean large companies with access to some of the lowest rates in the global capital markets are shifting the financing burden onto smaller companies that pay dearly for capital, if it's available at all.”
These late payments force small business to take out short-term loans at predatory rates, or factor their receivables. And don’t get us started on factoring.
You can take a look at our full supplier report here. Or you can just go ahead start helping your small business suppliers today by contacting Taulia.