The B2B payment landscape in 2025 reveals a crisis of unprecedented proportions. More than half of all business-to-business invoiced sales in America are overdue, creating a ripple effect that touches every aspect of commercial operations—from cash flow and growth plans to supplier relationships and operational efficiency.
The Payment Delay Crisis
Current data reveals that late payments have shifted from exception to expectation, fundamentally altering how businesses manage cash flow and supplier relationships.
- 55% of all B2B invoiced sales in the U.S. are overdue
- 86% of businesses report up to 30% of monthly invoiced sales are overdue
- 50% of US invoices are currently overdue
- 56% of US small businesses are owed money from late payments
- 64% of companies face delayed payments, with suppliers waiting 43 days on average
Financial Impact of Payment Delay
The accumulated costs of managing overdue accounts represent a significant drag on American business productivity.
- Average annual cost from late payments is $39,406 per company
- 10% of companies suffer over $100,000 in expenses related to late payments
- US small businesses with outstanding invoices are owed more than $17,000 each on average
The Aging Receivables
As invoices age beyond traditional collection timeframes, recovery becomes increasingly difficult and expensive.
- 64% of small businesses have invoices 90+ days overdue
- 12% of small businesses have invoices 120+ days overdue
- 47% of businesses have invoices overdue by more than 30 days
- Nearly 1 in 10 invoices are significantly overdue
Business Relationships at Risk
The data reveals that payment delays are actively reshaping commercial partnerships and supply chain relationships.
- 26% of business decision-makers have stopped working with a buyer or supplier due to payment delays
- 73% of SMBs are negatively impacted by late payments
- Over half of companies must delay or cancel investment, expansion, or hiring plans due to late payments
Growth Impact Analysis
Late payments don’t simply delay cash flow—they actively constrain growth potential and strategic planning.
- 91% believe that easy, secure payments are critical for driving business growth
- 72% of businesses say payment processing impacts their ability to grow
- 76% of businesses must address late invoice payments before focusing on growth
- 89% of businesses say late customer payments have set back long-term growth goals
Hidden Costs of Payment Delay
Time and resources devoted to collections activities represent opportunity costs that constrain productivity and strategic focus.
- 65% of businesses spend 14 hours per week on collections administrative tasks
- Manual invoice processing costs $22.75 per invoice vs $2-4 automated
The Payment Delay Automation Gap
Despite the clear financial benefits of automation, most businesses continue to rely on manual processes for payment management and collections. This automation gap represents both a competitive disadvantage and a market opportunity.
- Only 17% of businesses have fully automated their payment processes
- Only 5% of midsize businesses have fully automated AP/AR
Payment Delay Automation Barriers
Understanding why businesses resist payment automation provides insight into market development opportunities and client education needs. Cost concerns dominate, but skepticism about benefits and security fears also play significant roles.
- 45% of business leaders cite cost as the top barrier to payment automation
- 28% question whether automation would benefit their business
- 26% worry about security risks in payment automation
Payment Method Evolution
The persistence of traditional payment methods, particularly checks, creates both operational inefficiencies and fraud vulnerabilities. The data reveals a payment ecosystem in transition, with legacy methods maintaining surprising resilience.
- 96% of manufacturing employers expect check-based payments to be phased out soon
- 91% of organizations still utilize checks, up from 75% in 2023
- 17% of suppliers now extend payment terms beyond 60 days, up from 7%
Fraud and Security Concerns
Fraud attempts are becoming more sophisticated and frequent, particularly targeting traditional payment methods.
- 82% of business leaders say a single payment-related fraud incident could significantly damage relationships
- 79% of organizations were victims of payments fraud attacks/attempts in 2024
- 63% of organizations report check fraud in 2024
- 63% cite business email compromise as number one avenue for fraud attempts
- Only 5% of organizations reported fraud attempts with virtual cards vs over 30% with checks
- Check fraud accounted for 30% of all fraud losses in 2024
- Check fraud attempts grew by 10% among financial institutions from 2023 to 2024
Payment Delay Cash Flow Challenges
Companies struggling with late payments face operational constraints that extend beyond the immediate invoice amounts.
- 73% of small businesses report customer delinquency numbers increased over the past year
- 31% of businesses say late payment problems worsened in the past year
- 56% of firms cite paying operating expenses as a challenge
- 51% of firms cite uneven cash flows as a challenge
- More than 25% of small businesses are uncomfortable with their cash flow
Industry-Specific Insights
Different industries experience varying degrees of payment delay challenges, with some sectors facing particularly acute problems.
- Office facilities management companies wait 105 days for payments on average
- 60% of overdue invoices in security/compliance are 90+ days late
- Over half of manufacturing suppliers report late payments, averaging nearly 2 months
Payment Delay Technology and AI Trends
The adoption of artificial intelligence and advanced technology in payment processing represents a significant opportunity for improving collection efficiency and reducing processing costs.
- AI invoice processing market growing from $2.8B to $47.1B by 2034
- 75% of AP departments now use some form of AI/automation
- AI cuts processing time by 60%+ and reduces fraud
- 93% of B2B suppliers say digitizing payment processes is a top priority
Market Growth Opportunities
The evolution toward real-time payments and digital payment methods creates new opportunities for collection service providers and payment technology companies.
- Real-time payments market projected to grow at 35.4% CAGR from 2025 to 2032
- Real-time payments in the US saw 69% year-over-year increase
Additional Key Findings
Several additional statistics provide important context for understanding the broader implications of the B2B payment crisis and the strategic responses businesses are considering.
- 43% of business leaders planning to update payment processes say the goal is to drive growth
- Outstanding invoices represent 11% of companies’ total revenue on average
- Payment terms remain stable at around 43 days from invoicing in North America
- Domestic wire fraud has jumped by nearly 35% in recent years
Sources
- 2025 AFP Payments Fraud and Control Survey – Association for Financial Professionals
- 2025 Federal Reserve Report on Employer Firms – Federal Reserve
- 40Seas B2B Payment Terms Study (2025) – 40Seas
- AFP Report (2025) – Association for Financial Professionals
- American Express Trendex: B2B Payments Edition (2025) – American Express
- Atradius 2024 US B2B Payment Practices Report (2024) – Atradius
- Atradius 2025 Australia B2B Payment Report (2025) – Atradius
- Atradius North America 2025 (2025) – Atradius
- Convera Manufacturing Payment Delays (2025) – Convera
- Deloitte/Resolve Pay (2025) – Deloitte/Resolve Pay
- Federal Reserve Data (2024) – Federal Reserve
- Federal Reserve/Resolve Pay (2024) – Federal Reserve/Resolve Pay
- Gateway Commercial Finance Survey (2025) – Gateway Commercial Finance
- Intuit QuickBooks Small Business Late Payments Report (2025) – Intuit QuickBooks
- Mastercard Global Survey (2025) – Mastercard
- MHC Automation (2025) – MHC Automation
- MHC Automation B2B Payment Trends (2025) – MHC Automation
- Parseur Global AI Invoice Processing Trends (2025) – Parseur
- QuickBooks Mid-Sized Business Survey (2025) – QuickBooks
- Resolve Pay Real-Time Payments Report (2025) – Resolve Pay
- Supply Chain Brain (2025) – Supply Chain Brain
- US Chamber-MetLife Small Business Index (2025) – US Chamber/MetLife
- Zip B2B Payment Statistics (2025) – Zip
This analysis represents the most comprehensive compilation of B2B payment delay statistics available for 2025, providing collection professionals with authoritative data for client education, business development, and strategic planning.
