Reports of late customer payments increased by 39% year over year
SAN FRANCISCO, April 18, 2023–(BUSINESS WIRE)–Half (50%) of the businesses surveyed were paid late by their customers, according to a supplier sentiment survey conducted by Taulia, a leading provider of working capital management solution. This is the highest percentage since the annual survey began, and a sharp increase from the 36% who received payments late from last year.
Taulia’s global Supplier Sentiment Survey, conducted since 2014 and this year collecting the views and insights of over 9,600 respondents worldwide, found that only four in ten (41%) paid on time by their customers.
Adding to the financial pressure on businesses, the survey found that more than two-fifths (42%) of respondents expect borrowing costs to increase over the next 12 months. Of which, nearly a tenth (7%) predicted their costs to increase by more than 10%.
To protect their working capital needs, bridge cash flow gaps, and help support business growth, three-fifths (59%) of respondents expressed interest in getting early payments for at a discount even some times. The main reasons for getting an early payment include:
○ Cash flow gap (48%)
○ Required working capital (26%)
○ Predictability of collections/payments (24%)
○ Ease of use (12%)
○ Reduce Days of Outstanding Sales (9%)
Cedric Bru, CEO of Taulia, commented: “Amid high inflation and market turmoil, businesses around the world are facing financial stress. A marked increase in late payments this year is the latest in a higher trend of behavior, suggesting that businesses are navigating a difficult financial period.”
“In times like these, working capital solutions are more important than ever for businesses looking to financially future-proof themselves. Not only do these solutions allow them to access of more liquidity to optimize their cash flow, but they also keep their businesses running smoothly. At the macro level, working capital solutions also increase the strength and stability of the supply chain in the world.”
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About the Taulia Supplier Survey Sentiment Survey
Taulia’s annual Supplier Sentiment Survey received more than 9,600 respondents from suppliers worldwide, from SMEs to large corporations with revenues of more than $5 billion.
About Taulia
Taulia is a fintech provider of working capital management solutions headquartered in San Francisco, California. Taulia helps companies access the value tied to their accounts payable, receivables, and inventory. A network of over 2 million businesses use Taulia’s platform to know when they want to pay and get paid. Taulia enables its customers to implement their working capital strategies, support their suppliers with early payments, and contribute to building sustainable supply chains. Taulia processes more than $500 billion annually and is trusted by the world’s largest companies, including Airbus, AstraZeneca, and Nissan. In March 2022, Taulia became part of SAP. Taulia operates as an independent company with its own brand of the SAP Group.
For more information, please visit www.taulia.com
See the original version on businesswire.com: https://www.businesswire.com/news/home/20230418005173/en/
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