New Data says outstanding invoices reach shocking levels

0
340
increase in outstanding invoices

New research by Upflow has found that over half of outstanding invoices (57%) are late, with a third of invoices (33%) taking longer than 90 days to be paid.

Upflow says that throughout several industries, there is a worrying trend that if outstanding invoices are not paid on-time or within the first 30 days of becoming overdue, they have a high chance of still being outstanding 90+ days after the due date.

These numbers make it clear that we need to find a way to solve this growing issue. On average, across different industries, 33% of overdue invoices are still unpaid even 90 days after they’re due.

Outstanding Invoices causing late payments

Upflow CEO Brad Cross said “What our report has outlined is that late payments are a significant issue across various industries, causing substantial cash flow challenges for businesses. The data highlights that over half of invoices are paid late, with some sectors experiencing even higher rates of delay.

“These insights underscore the urgent need for businesses to adopt more robust payment processes. By addressing the root causes of payment delays and implementing effective strategies, companies can improve their cash flow and overall financial health.

“However, it’s important to note that this is not a lost battle. Business leaders can take proactive steps to address these issues, as shown by the success of top quartile performers within our report. These high-performing companies have demonstrated that adopting robust payment processes can significantly reduce payment delays compared to the average companies.”

Based on the latest data, the necessity for clinical business debt collection is needed more than ever. Outstanding invoices hurt any businesses bank balance and cash-flow.

Sector

1-30 days late

31-60 days late

61-90 days late

90+ days late

Office & Facilities Management

6%

3%

2%

66%

Security, Compliance & Identity

9%

4%

0%

60%

Finance, Insurance & Banking

16%

5%

4%

44%

Back office, Operations & Productivity

16%

6%

4%

40%

Cloud, Network & IT Infrastructure

16%

3%

4%

36%

Human Resources

19%

6%

3%

33%

Research, Data & Intelligence

19%

9%

3%

32%

Real Estate & Construction

17%

6%

3%

32%

Marketing & Advertising

13%

5%

2%

29%

Media & Publishing

20%

5%

1%

28%

Consumer Packaged Goods

14%

5%

4%

25%

Healthcare

18%

8%

5%

21%

Transportation & Logistics

19%

5%

2%

20%

Manufacturing & Supply Chain

18%

5%

2%

16%

Sales & Customer Success

19%

4%

1%

9%

Total Average

16%

5%

3%

33%

 

Sector

Percentage of late invoices

Office & Facilities Management

77%

Security, Compliance & Identity

73%

Finance, Insurance & Banking

69%

Back office, Operations & Productivity

66%

Research, Data & Intelligence

63%

Human Resources

61%

Cloud, Network & IT Infrastructure

59%

Real Estate & Construction

58%

Media & Publishing

54%

Healthcare

52%

Marketing & Advertising

49%

Consumer Packaged Goods

48%

Transportation & Logistics

46%

Manufacturing & Supply Chain

41%

Sales & Customer Success

33%

Total Average

57%

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