25 Accounts Receivable Statistics shaping AR in 2026

Quick answer: Across recent studies, more than half of B2B invoices are paid late, UK SMBs are owed tens of thousands of pounds at any time, and small-business owners lose around five hours a week following up on payment. The single biggest lever in the data is automation: businesses that automate receivables consistently report lower overdue balances and shorter days sales outstanding (DSO). At Paidnice, customers reduce DSO by about 50% within 30 days once collections run automatically.

We have pulled together 25 accounts receivable statistics drawn from over 15 global studies and reports, with each figure dated to its source so you can see how current it is. Together they show where AR management and cash collection stand in 2026, and what the numbers mean for businesses navigating a competitive financial landscape.

A note on the data before you cite it: these figures come from different studies, regions and definitions of "late", and several are sourced to reports published between 2021 and 2024. Treat them as direction rather than gospel, and check the source year next to each one.

For the full list with sources and years in one place, here is the same data as a table you can scan or cite.

Late payments are straining business cash flow

Even in 2026, late payments remain a persistent issue, disrupting cash flow and threatening business growth globally. The problem spans industries and geographies:

1. Over 50% of all B2B invoiced sales in the USA, UK, and Asia are overdue.

That is according to a 2023 study from Atradius. It is even worse across other parts of the world, with Barclays reporting 58% in the UK and parts of Asia sitting at over 60% (Barclays and Coface, 2022).

2. In the UK, SMBs are owed an average of £27,000 in late payments.

Per 2023 research from Intuit and the UK Department for Business and Trade, this is a 27.4% increase since 2021, when the total owed was approximately £22,000.

3. 52% of small businesses experienced late payments from their customers at some point in the previous 90 days.

This comes from the 2023 "Time is Money" research by the Federation of Small Businesses (FSB) in the UK.

4. Half of all payments made to SMEs are paid late, with 10% paid more than 30 days late and another 12% paid 60 days late.

The same FSB study found that this trend costs UK small businesses billions annually and significantly affects their ability to invest, grow and employ.

5. Since 2010, over 40% of all credit-sales invoices have not been paid on agreed terms.

Based on 2022 research from Sage and The Data Foundry.

What this means for 2026

The data points to a persistent late-payment problem, with over half of invoices overdue and SMEs owed record amounts. The pressure is on cash flow, not goodwill, and the businesses that hold their DSO are the ones running consistent, automated credit control rather than ad-hoc follow-up.

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.

That borrowing need grows significantly when invoices are paid 7 to 8 days late, as highlighted by Xero's econometrician, Cahit Guven, in Xero's XSBI research commentary (2023).

7. Small-business owners spend approximately 10% of their workday (5 hours a week) following up on unpaid invoices.

According to a 2024 study from Xero, which underlines how much manual time goes into accounts receivable management.

8. Late payments cost Australian businesses AU$1.1 billion a year, NZ businesses NZ$456 million a year, and UK businesses £684 million a year.

In additional financing and collection costs, highlighted in a special research report from Xero (2022) drawing on over 200,000 unique data points.

What this means for 2026

The operational cost of late payments is hard to sustain, with businesses losing both money and productivity. Expect a sharper focus on automation and clearer payment policies as businesses work to recover lost time and reduce borrowing demands.

Shifting payment terms reveal evolving priorities

Payment terms and industry standards are shifting, reflecting the balance between maintaining relationships and protecting cash flow.

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 2024 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 is according to 2024 research from Atradius, as firms across the continent seek to build stronger customer relationships and increase sales. Finland has the most lenient payment terms at 71 days, and Greece the strictest at just 32 days.

11. Between 2010 and 2021, UK small businesses halved their days sales outstanding (DSO), from around 45 days in the 2010 to 2013 period to about 22 days by 2020 to 2021.

Based on an analysis of over 58 million sales invoices from over 100,000 UK SMBs from 2010 to 2021 by accounting software firm Sage (2022). This is a historical dataset that ends in 2021, not a current reading.

What this means for 2026

Payment terms are becoming more polarised. Some regions and industries are extending terms to support customer relationships, while others tighten 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 fall behind, and others thrive

Some sectors, such as financial services and accommodation, thrive thanks to robust financial systems and cash-flow controls. Others, such as education, construction and manufacturing, fall behind due to structural inefficiencies and economic pressures.

12. The sectors with the highest reported rates of late payments are education (69%), construction (63%) and manufacturing (63%).

The 2022 study from the University of Edinburgh's Smart Data Foundry found the reasons were a reliance on public-sector funding (for education), the project-based nature of the work alongside a high volume of disputes (for construction), and long production cycles and sensitivity to economic fluctuations (for manufacturing).

13. The sectors with the lowest reported rates of late payments are financial services (18%) and accommodation and food service (21%).

The same 2022 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, and the higher level of financial controls (such as automated reminders and late fees) in financial services.

What this means for 2026

The gap between thriving and struggling industries is likely to widen. High-risk sectors like education and construction need to address funding delays and disputes to compete, while industries with strong financial controls, like financial services, hold their edge. Expect businesses in high-risk industries to take AR management into their own hands, with a focus on automation and proactive management, to reduce these pressures and build resilience.

Forgetfulness sets off chain reactions of late payments across the supply chain

Late payments often stem from avoidable issues such as customer forgetfulness and supplier cash-flow problems. These small problems create ripple effects, delaying payments across entire supply chains.

14. Nearly 1 in 5 payments (23%) are paid late because customers forget to pay.

According to November 2023 research conducted by YouGov for Intuit in the UK, underlining the importance of having effective reminders in place.

15. Supplier cash-flow issues account for 20% of non-payments to their own suppliers, kick-starting a chain reaction of delays.

According to a 2023 study by Intuit, indicating a domino effect where late payments within the supply chain trigger further late payments at other businesses.

16. 60% of SMBs are not currently using financial management software for pay-enabled invoicing (software that makes it simple for customers to pay faster).

According to the 2023 YouGov research for Intuit.

What this means for 2026

Businesses face growing pressure to address late payments and the ripple effects of customer forgetfulness felt downstream across the supply chain. Companies that do not adopt automated reminders and pay-enabled invoicing risk being trapped in a cycle of worsening cash flow.

Why AR is becoming the CFO's most valuable asset

Accounts receivable is no longer just a back-office function. Automation in receivables is becoming a key driver of business outcomes, and CFOs and finance leaders increasingly recognise 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 2024 study from BlackLine, this shift has been driven by the need to address inflation, supply-chain complexity and economic uncertainty. AR automation is at the forefront of this change, enabling teams to provide faster, data-driven insights that align with broader financial goals.

18. 77% of AR teams now engage directly with CFOs, and 16% are positioned as key advisors on business strategy.

The 2024 findings from BlackLine report that this elevated role is largely fuelled by AR automation technologies that turn manual processes into actionable insights, cementing AR's place at the decision-making table.

19. 71% of companies planned to increase the responsibilities of their AR teams during 2024.

The 2024 report from BlackLine found this was a direct response to growing economic challenges, where technology can empower AR teams to handle increased demands while streamlining processes and improving cash-flow predictability.

What this means for 2026

AR is firmly on the CFO agenda. With 75% of finance leaders identifying AR as a strategic function and 77% of AR teams advising on business decisions, automation is changing how organisations of every size manage cash flow and financial planning. Expect more finance leaders to prioritise AR management as a way to achieve their company goals.

Firms embracing AR automation are leading on savings and cash flow

AR automation is becoming a competitive advantage, helping businesses 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 2021 report from PYMNTS for American Express shows that while some progress has been made to automate receivables in the US, there is plenty of room for improvement.

21. 62% of companies planned to upgrade their AR-related technology during 2024.

According to a 2024 cross-industry survey from 360 Thought Leadership and BlackLine, pointing to significant ongoing 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 2024 BlackLine survey.

23. Businesses using financial management software experience a 25% reduction in overdue payments and a 21% improvement in cash flow.

Per 2023 research by accounting software firm Intuit QuickBooks. The report also found that a fifth (21%) of businesses using financial management software saw improved customer relationships due to reduced manual follow-up on invoices.

24. 85% of finance teams using automation report increased efficiency in payment processing.

A 2023 survey by MineralTree shows that 85% of finance teams using automation tools experience greater efficiency, with 63% reporting improved timeliness of payments.

25. 62% of companies report improved days sales outstanding (DSO) with AR automation, compared with those that did not automate.

According to 2021 research from PYMNTS.com, 62% of firms implementing AR automation saw measurable reductions in their DSO, speeding up invoice-to-cash cycles and improving cash-flow predictability.

What this means for 2026

Firms leveraging AR automation are leading on savings and cash-flow performance. Automation is becoming a default rather than a differentiator, driving efficiency, reducing overdue payments and freeing resources for strategic growth. Businesses sticking to manual processes face rising risk in a competitive, data-driven landscape.

What we see at Paidnice

Those are other people's numbers. Here are ours. We run accounts receivable for thousands of small and mid-sized businesses on Xero and QuickBooks, and the pattern is consistent: when reminders, late fees and statements stop depending on someone remembering to send them, DSO comes in by about 50% within 30 days on average. We will also be honest about the limits of the figures above. They come from different studies, regions and definitions of "late", and several are sourced to reports published a few years ago, so treat them as direction rather than gospel.

Venture Workspace, a coworking provider in South Africa, had more than 25% of its payments coming in late. After automating its receivables with Paidnice and tracking metrics like AR turnover and DSO, late payments dropped to under 5%, freeing up cash and time for growth.

How these 25 statistics are shaping 2026

These 25 accounts receivable statistics show that AR management is at a turning point. Late payments are still widespread across the world, and inefficiencies persist in most industries, but automation and stronger AR practices are driving change for the firms that adopt them:

• Late payments remain a global issue, with over 50% of B2B invoices overdue, costing businesses billions annually and straining cash flow.
• Automation is transforming AR collections. Companies with fully automated AR systems report increased savings, faster payments and less stress.
• Finance leaders and CFOs are prioritising AR strategy. 75% of finance leaders now see AR as strategic, with 77% of AR teams 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 still relying on manual AR processes and only 44% automating even a few tasks.

Expect automation to become a default tool for AR management, driving efficiency and improving cash-flow predictability. Businesses investing in AR will lead, while those sticking to outdated practices risk falling behind.