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% |
