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For SMBs, Minding The Receivables Gap

For SMBs, Minding The Receivables Gap

Getting paid in a timely manner is more than just a hope for SMBs – it’s a necessity for optimal budgeting, cash flow management and growth. In B2B, U.S. companies typically match the payment terms of their accounts payable (AP) with their accounts receivable (AR) – and bumps are smoothed over a bit by trade credit. But there are inefficiencies in the system, as detailed in the SMB Receivables Gap Playbook.

Data:

55.3 percent: Share of high-margin firms that believe extending credit helps build customer loyalty.

40.3 days: Average length of payment term that established, high-margin firms extend to suppliers.

53.4 percent: Portion of low-margin firms that consider the time and complexity of administering trade credit a challenge.

$3.1 trillion: Total value of funds suspended in AP and AR on any given day in the United States.

38 percent: Frequency with which high-margin firms claim they are paid late.

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