Recently, the prevalence of payment delays has emerged as a significant challenge for a vast majority of businesses operating in Poland. According to a study conducted by the Kaczmarski Group titled "2024 from the Perspective of Micro, Small, and Medium Enterprises," findings indicate that 86% of SME entities issue invoices with deferred payment dates, with half of them experiencing delays in contractor payments. This situation poses a risk of financial liquidity issues, prompting businesses to seek solutions to mitigate these challenges.
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The study reveals that 55% of SMEs grapple with payment delays, resulting in over half of entrepreneurs encountering difficulties in receiving timely payments from contractors. Even if not leading to severe consequences such as complete lack of funds, these delays still influence business activities.
Despite the widespread use of invoices with deferred payments, it comes with inherent risks. Businesses struggle to strike a balance between customer payment terms and those of suppliers, potentially leading to a loss of financial liquidity. Additionally, they bear the burden of credit risk, amplifying the magnitude of these challenges.
While 3% of businesses claim that customer payment delays do not affect them, for 15%, this is a daily occurrence. 40% report occasional encounters with such situations, with the transport sector being the most affected, experiencing daily challenges at 29%.
Despite the consequences, most SMEs are reluctant to abandon deferred payment dates on invoices. When queried about plans for 2024, 42% admit to having no intentions to alter invoice payment dates. For these businesses, the fear of losing clients outweighs concerns about financial liquidity. Factoring emerges as a viable solution, where entrepreneurs submit their invoices (with deferred payment dates) to a factoring company for financing. The factoring company promptly pays the invoiced amount, ensuring immediate availability of funds for the business.
Source: biznes.meble.pl