In today’s tight economy, one of the biggest threats to growth is slow payment—not just losing customers or market share.
An exclusive new 2025 survey from The Kaplan Group reveals the significant revenue and cash flow risks businesses face from delayed payments—particularly for mid-sized firms and industries like SaaS, healthcare, and professional services.
The survey was conducted among 100 financial decision-makers, including CFOs, VPs of finance, controllers, and directors of finance, representing businesses with revenue ranging from under $10m to over a billion.
- Companies with annual revenue between $251M–$1B report the worst impacts, with 8.3% losing over 10% of annual revenue to defaults.
- In fast-scaling sectors like SaaS, 22.2% of companies lose over 10%—suggesting customer defaults may be undermining the very innovation and agility these sectors are known for.
The moment AR stops being a back-office function and starts driving strategy, you know we’re in a new financial reality. What used to be a 90-day nuisance is now a 12-month risk.
Key Findings From the Survey
- 82% of companies report moderate to critical cash flow disruption due to late payments.
- 11% lose more than 5% of annual revenue—5% lose over 10%.
- Mid-sized companies ($251M–$1B) are hit hardest: 40.9% face severe/critical cash flow disruption; 8.3% lose over 10% in revenue.
- Technology/SaaS firms: 44.4% report severe/critical disruption; 22.2% lose over 10% of revenue.
- Healthcare firms: 33.3% report severe/critical disruption; 15.4% lose over 10% in revenue due to inability to collect invoices over 90 days past due.
- Manufacturing companies: 91.3% report consistent 1–5% revenue loss.
- Professional services firms: 38.5% report significant cash flow disruption.
Late Payments Are Straining Cash Flow Across the Board
Over 80% of businesses report cash flow disruption due to overdue invoices. While many cite moderate impact, 16% describe severe or critical consequences—enough to delay payroll, stall operations, or force short-term borrowing.
Revenue Losses Are No Longer Marginal
Nearly 1 in 10 companies lose more than 5% of their annual revenue to defaults, with 5% losing over 10%. These aren’t rounding errors—they’re profit and growth inhibitors. For mid-sized firms and fast-scaling sectors like SaaS and healthcare, that kind of loss can derail forecasts.
Mid-Sized and High-Growth Companies Face the Biggest Threat
Mid-market firms ($251M–$1B) and companies in tech, healthcare, and professional services report the most severe effects—both in lost revenue and cash flow strain. Their business models rely on reinvestment, making them especially vulnerable when cash gets tied up in aging receivables.
Between the Lines
This isn’t just a collections issue—it’s a reflection of how business relationships are changing. Payment discipline has weakened, and companies are increasingly absorbing risk that once sat with clients.
The data also signals a potential shift in how CFOs will define operational efficiency: Not just cutting costs, but accelerating cash conversion.
Some critics may argue that revenue “lost” to late payments is often recovered in later quarters. But even deferred payments can hinder growth by triggering borrowing, delaying payroll or reinvestment, or risking compliance with financial covenants.
When capital is expensive, even small delays can carry compounding costs.
What’s Next
If 1 in 10 companies are losing over 5% of revenue due to customer defaults, the time for passive AR strategies is over.
- Businesses need to treat collections as a strategic lever—whether that’s through automation, outsourced recovery, or upfront contract redesign.
- Mid-market and SaaS firms, in particular, should reassess their credit policies and collection timelines before expansion plans backfire.
Revenue can’t drive growth if it’s stuck in limbo. With interest rates high and capital tight, liquidity is no longer optional—it’s existential.
Methodology
This new survey was conducted in February 2025.
An exclusive cohort of 100 key financial decision-makers (CFOs, VPs of finance, controllers, and directors of finance) participated, representing small businesses to large enterprises ($10M to $1B+ revenue).
The survey analyzed preventive payment measures, their adoption rates, and their impact on reducing late payments.
Data was segmented by DSO performance to identify which strategies lead to better collection outcomes.
