Chart of the Week – Percentage of Payments on Time by Select Countries

If you look at the percent of payments that are done on time by some select countries below, you wonder how any business can forecast and manage cash.

Only Germany reaches 80%, with OECD countries like the USA  and Canada  around 50% and god forbid the UK at 30% (no wonder there are so many early payment innovations coming out of England).

The data comes from Dun & Bradstreet, and is information held in DUNTRADE® PROGRAM.  DUNTRADE® has collected data on more than 5 billion transactions since 1972 and has payment experiences available for more than 27 million companies in relation to their suppliers.

One conclusion from looking at this data is early payment initiatives will continue to be attractive.  On the other hand, companies used to delaying payment by not paying on time and who have implemented software that “systemitizes” the whole AP process must realize playing the late games doesn’t work with technology.  Interesting times for sure!

 

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