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.
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.