25 Important Accounts Receivable Statistics that are shaping the future of AR in 2025
As we enter 2025, we’ve analyzed data from 25 key accounts receivable statistics drawn from over 15 global studies and reports from the past year. This comprehensive overview reveals the most important insights shaping AR and cash collection today.
From emerging trends to critical challenges, the data highlights where AR management stands in 2025 and what it means for businesses navigating a competitive and rapidly evolving financial landscape.
TL;DR
- Late payments remain a critical issue: Over 50% of global B2B invoices are overdue, costing businesses billions annually.
- Automation is the key to efficiency: Firms with fully automated AR systems report faster growth, reduced stress, and better cash flow management.
- Industry disparities are widening: Sectors like education and construction face the highest late payment rates, while financial services lead with robust cash flow controls.
- CFOs are prioritizing AR: 75% of finance leaders now see AR as a strategic function, driving decision-making and financial planning.
- 2025 is the year of AR transformation: Companies investing in AR automation will lead on savings, cash flow, and operational efficiency, leaving manual processes behind.
Late payments are crippling business cash flow
Even in 2025, late payments remain a persistent issue, disrupting cash flow and threatening business growth globally. The problem spans industries and geographies, demanding immediate attention:
1. Over 50% of all B2B invoiced sales in the USA, UK, and Asia are currently overdue.
That's according to the latest study from Atradius. It is even worse across other parts of the world with Barclay's reporting that this is 58% in the UK and parts of Asia is sitting at over 60%.
2. In the UK, SMBs are owed an average of £27,000 in late payments.
In the latest research from Intuit and from the UK Department for Business and Trade, this is an alarming 27.4% increase since 2021, where the total owed was approx £22,000.
3. 52% of small businesses experienced late payments from their customers at any point in the previous 90 days.
This comes from the latest research from the Federation of Self Employed & Small Businesses in the UK.
4. Half of all payments made to SMEs are paid late, with 10% being paid after 30 days late, and another 12% being paid 60 days late.
The FSB’s latest study also found that this trend is costing UK small businesses billions of dollars annually and significantly impacting their ability to invest, grow, and employ.
5. For the last 15 years (from 2010) over 40% of all credit sales invoices are not paid on agreed terms.
Based on the latest research from Sage and The Data Foundry.
Why does this matter in 2025?
The data highlights a worsening late payment crisis, with over 50% of invoices overdue and SMEs owed record amounts.
💡In 2025, we can expect businesses to face growing cash flow pressures, forcing a shift toward stricter credit controls, increased use of automation, and tighter payment terms to mitigate the impact of delayed payments.
Late payments put business operations under pressure
Late payments are increasingly straining business operations and resources, highlighting the broader economic impact of inefficient accounts receivable practices.
6. A 1-day delay in payment corresponds to a 1.1% increase in small business borrowing, or roughly US $278.7 billion on average.
And that this borrowing need grows significantly when invoices are paid 7-8 days late, as highlighted by Xero’s Econometrician, Cahit Guven, in their ongoing XSBI research commentary.
7. Small business owners spend approximately 10% of their workday (or 5 hours a week) chasing unpaid invoices.
According to another study from Xero. Highlighting how important the need for automation in accounts receivable management.
8 Late payments cost Australian businesses AU $1.1 billion per year, NZ businesses NZ $456 million per year, and UK businesses £684 million per year.
In additional financing and collection costs, highlighted in a special research report from Xero from over 200,000 unique data points.
Why does this matter in 2025?
Heading into 2025, the operational cost of late payments is unsustainable, with businesses losing both money and productivity.
💡Expect a sharper focus on automation tools and stricter payment policies as businesses strive to recover lost time and mitigate escalating borrowing demands.
Shifting payment terms reveal evolving priorities
Payment terms and industry standards are shifting in 2025, reflecting the delicate balance between maintaining relationships and ensuring cash flow stability.
9. The 30-day payment term dominates B2B transactions, accounting for 54% of all payment agreements.
While micro businesses may offer shorter terms, and businesses in the wholesale goods sector might extend to 60 days, the 30-day term remains the dominant practice. According to the latest late payment research for the UK Department for Business and Trade.
10. Average payment terms in Europe increased 26% in 2024 to an average of 52 days, up from 41 days in 2023.
That’s according to new research from Atradius, as firms across the continent seek to build stronger customer relationships and increase sales. Notably Finland has the most lenient payment terms at 71 days, and Greece the strictest at just 32 days.
11. Over the past decade, UK small businesses have halved their Days Sales Outstanding (DSO), dropping from 45 days in 2010-13 to just 22 days by 2020-21.
Based on an analysis of over 58 million sales invoices from over 100,000 UK SMBs from 2010–2021 by accounting software firm Sage.
Why does this matter in 2025?
Heading into 2025, payment terms are becoming increasingly polarized. While some regions and industries are extending terms to support customer relationships, others are tightening controls to improve liquidity.
💡Expect businesses to adopt more tailored payment strategies and automation to strike the right balance between flexibility and financial security.
Why some industries are falling behind, and others are thriving
While some sectors like financial services and accommodation are thriving thanks to robust financial systems and cash flow controls, others, such as education, construction, and manufacturing, are falling behind due to structural inefficiencies and economic pressures.
12. The industries with the highest reported rates of late payments happen in education (69%), construction (63%) and manufacturing (63%) sectors.
The study from the University of Edinburgh’s Smart Data Foundry found that the reason for such high rates of late payments were due to a reliance on public sector funding (for education), project-based nature of the work, alongside a high amount of disputes (for construction) and long production cycles and sensitivity to economic fluctuations (for manufacturing).
13. The industries with the lowest reported rates of late payments occur in the financial services (18%), accommodation and food service (21%) sectors.
The same study from the Smart Data Foundry found that low rates were due to the high proportion of cash or non-credit transactions in accommodation and food industries, and the higher level of financial controls (such as automated reminders, late fees etc) in the financial services sector.
Why does this matter in 2025?
In 2025, the gap between thriving and struggling industries will grow wider. Late payments will both reflect and exaggerate these challenges. High-risk sectors like education and construction must address funding delays and disputes to compete, while industries with strong financial controls, like financial services, will maintain their edge.
💡Expect businesses in high-risk industries to take AR management into their own hands, focusing on automation and proactive management (such as tools like Paidnice) to reduce these pressures and build resilience.
Forgetfulness kicks off major chain reactions of late payments throughout the supply chain
Late payments often stem from avoidable issues like customer forgetfulness and supplier cash flow problems. These small problems create ripple effects, delaying payments across entire supply chains.
14. 1 out of 5 payments (23%) are paid late due to customers ‘forgetting’ to pay.
According to November 2023 research conducted by YouGov for Intuit in the UK. highlighting the importance of having effective reminders in place.
15. Supplier cash flow issues account for 20% of non-payments to their suppliers, kick-starting a chain reaction of payment delays
According to a recent study by Intuit, indicating a chain reaction where late payments within the supply chain create a late payment domino effect on other businesses.
16. 60% of SMBs are not currently using financial management software for pay-enabled invoicing in their business (i.e. software that makes it simple for customers to pay faster).
According to the YouGov research for Intuit.
Why does this matter in 2025?
In 2025, businesses will face increasing pressure to address late payments and their ripple effects from customer forgetfulness is felt down stream in the entire supply chain.
💡Companies that fail to adopt automated reminders and pay-enabled invoicing risk being trapped in a cycle of worsening cash flow issues. To stay competitive, businesses must prioritize efficiency, leveraging technology to reduce delays and protect cash flow stability.
Why AR is becoming the CFO’s most valuable asset in 2025
Accounts receivable is no longer just a back-office function. Automation in receivables is quickly becoming the key driver of successful business outcomes. In 2025, CFOs and Finance leaders are starting to recognize its potential to streamline processes, improve cash flow, and deliver data-driven insights.
17. 75% of finance leaders have seen AR transition into a strategic function
According to a recent study from Blackline, this has been driven by the need to address inflation, supply chain complexities, and economic uncertainty. AR automation tools, like Paidnice, are at the forefront of this shift, enabling teams to provide faster, data-driven insights that align with broader financial goals.
18. 77% of AR teams now have direct engagement with CFOs, with 16% of these teams positioned as key advisors on business strategy.
The findings from Blackline have reported that this elevated role is largely fueled by AR automation technologies that transform manual processes into actionable insights, solidifying AR's place at the decision-making table.
19. 71% of companies plan to increase the responsibilities of AR teams in 2024.
The report from Blackline finds that this is in direct response to growing economic challenges, and where technology (such as Paidnice) can empowering AR teams to handle increased demands while streamlining processes and improving cash flow predictability.
Why does this matter in 2025?
AR automation will be the silver bullet for CFOs navigating choppy economic waters and will be essential to driving growth in 2025.
With 75% of finance leaders identifying AR as a strategic function and 77% of AR teams actively advising on business decisions, automation is transforming how organizations big and small manage cash flow and financial planning.
💡Expect to see more CFOs and finance leaders prioritizing AR management, as AR solutions will give them a critical edge to successfully achieve their company goals in 2025.
In 2025, Firms embracing AR automation will take the lead on savings and cash flow
AR automation is becoming a competitive advantage, helping businesses to streamline processes, reduce overdue payments, and improve financial stability.
20. Close to half (44%) of companies in the US have automated only a handful of AR tasks, while over a third (33%) still rely on manual processes.
The report from PYMTS for American Express shows that while some progress has been made to automate receivables in the US, that there is plenty more room for improvement.
21. 62% of companies plan to upgrade their AR-related technology in 2024.
According to the cross-industry survey from 360 Thought Leadership, alongside Blackline, which tells us that we are on the cusp of a huge adoption of Accounts Receivable technology.
22. 91% of mid-sized firms with fully automated AR systems report increased savings, less cash flow stress, and faster growth.
According to a recent Blackline survey.
23. Businesses using financial management software experience a 25% reduction in overdue payments and a 21% improvement in cash flow.
Per research by accounting software firm Intuit QuickBooks. The report also uncovers that a fifth (21%) of businesses using financial management software have seen improved customer relationships due to reduced manual invoice chasing.
24. 85% of finance teams using automation report increased efficiency in payment processing.
A recent survey by MineralTree shows that 85% of finance teams leveraging automation tools experience greater efficiency, with 63% reporting improved timeliness of payments. This reinforces the critical role of AR automation in streamlining financial operations.
25. 62% of companies report improved Days Sales Outstanding (DSO) with AR automation (vs those who didn’t)
According to research from PYMNTS.com, 62% of firms implementing AR automation have seen measurable reductions in their DSO, speeding up invoice-to-cash cycles and enhancing cash flow predictability.
Why does this matter in 2025?
In 2025, firms leveraging AR automation will lead on savings and cash flow performance. Automation will become a non-negotiable tool, driving efficiency, reducing overdue payments, and freeing resources for strategic growth.
💡Businesses sticking to the status quo of manual processes will run into increasing risks, falling behind in a competitive, data-driven financial landscape.
How these 25 accounts receivable statistics are shaping 2025
These 25 accounts receivable statistics show us that AR management is at a crucial turning point in 2025, with growing late payments across the world, and inefficiencies in most industries are still widespread, but automation and strategic AR practices are driving change quickly, marking a dramatic improvement in economic outcomes for firms that embrace AR technology in 2025:
Notable trends to take note of:
- Globally, late payments are still a huge issue, with over 50% of global B2B invoices are overdue, costing businesses billions annually and straining cash flow.
- Automation is transforming AR collections. Companies with fully automated AR systems (such as Paidnice) report increased savings, faster payments, and reduced stress.
- Finance leaders, and CFOs are prioritizing AR strategy. 75% of finance leaders now see AR as strategic, with 77% of AR teams actively advising on financial decisions.
- Industry disparities are widening. High-risk sectors like education and construction face mounting challenges, while financial services thrive with strong cash flow controls.
- Operational inefficiencies remain, with many companies across the world still relying on manual AR processes, with only 44% automating even a few tasks.
Where AR is heading in 2025
Expect automation to become a non-negotiable tool for AR management, driving efficiency and improving cash flow predictability.
Businesses investing in AR innovation will lead, while those sticking to outdated practices risk falling behind in an increasingly competitive financial landscape.
