Over half of invoices paid late

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 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.

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.”

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%
Backoffice, 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%
Backoffice, 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%