Study: 50% of SME Invoices Paid Over 30 Days Late
A recent study by fintech Xepelin reveals that 50% of invoices issued by Small and Medium-sized Enterprises (SMEs) are paid more than 30 days past their due date. The report indicates a general trend of increasing payment terms. In 2024, the average payment days stood at 40. This figure slightly decreased to 39 days in 2025. However, from January to May of the current year, the average payment period has reached 37 days. This data highlights a persistent challenge for SMEs in managing their cash flow due to delayed payments from their clients.
The study by Xepelin underscores a systemic issue within business payment cycles, particularly impacting SMEs. The data suggests that despite a slight decrease in average payment days from 2024 to early 2027, a significant portion of invoices remain overdue by over 30 days. This prolonged payment cycle can strain SME liquidity, potentially hindering their operational capacity and growth. Analyzing the underlying incentives for delayed payments, such as larger corporations leveraging their market power to extend terms, is crucial. Future policy or industry initiatives could focus on standardizing payment terms or exploring technological solutions to automate and enforce payment schedules, thereby fostering a more stable financial ecosystem for smaller businesses.
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