Two-thirds (66%) of businesses are now willing to accept a discount on their invoices in exchange for faster payment, signaling a proactive approach to working capital management as macroeconomic pressures mount, according to SAP Taulia’s annual supplier survey.
“Across our network, we are seeing that in today’s volatile environment, cash flow is increasingly prioritized over price. Suppliers are reassessing every available lever, from early payment programs to alternative financing, to maintain operations and protect supply chain stability. Our research indicates that the decline in on-time payments is continuing, which makes the need for reliable and predictable cash conversion more critical than ever. In this context, buyers that can consistently offer on-time or early payment will be recognized not just as customers, but as true strategic partners,” says Peddy Hashemi, global head of customer success at SAP Taulia.
Key takeaways:
· This willingness to trade margin for speed comes as payment delays accelerate globally. Currently, only 37% of invoices are paid on time, a steady decline from 42% in 2024 and a sharp drop from the 54% recorded in 2019. For those facing delays, the timeframe is also creeping upward, with 18% of suppliers now waiting between 1–15 days past the due date, compared with 17% last year.
· The need for reliable cash conversion is being amplified by external economic factors. While one in four businesses (25%) report that rising tariffs are directly squeezing their profit margins, timing of payments over the full face value of the invoice still has higher priority as cash flow is crucial to maintaining business operations.
· Despite this pressure, there remains a notable gap in financial visibility within many organizations. One-fifth (20%) of businesses surveyed admitted they do not use external sources of finance, suggesting an opportunity to better align available financing options with immediate liquidity needs.
· Among those using external finance, businesses are diversifying their liquidity sources by incorporating a variety of tools. Virtual or credit cards (22%), early payment programs (16%), and lines of credit (16%) rank among the Top 5 most used options to bridge the gap.
· While the share of suppliers who receive early payments from buyers has remained stable year-on-year at 3%, the fact that 66% of businesses are happy to accept a discount to access cash sooner underscores a strong demand for flexible, lower-cost options that provide immediate liquidity.
