According to Basware, a provider of e-invoicing and purchase-to-pay solutions, although businesses understand the benefits of early payment discounts, suppliers are not offering them systematically, and are missing out on opportunities to encourage buyers to pay on time or early. This places businesses in a vicious circle: frequently being paid late (43 % of buyers are paying suppliers up to a month late) yet not leveraging the potential of discounts or automation to speed up the payments they do receive.
The survey reports 62 % of suppliers are aware of the concept of early payment discounts, 56 % see early payment services as important, and 69 % agree that they would have a considerable positive impact on the cash flow of their organisation. Yet only 33 % of suppliers are considering offering discounts for early payment.
Moreover, the survey suggests small businesses are hesitant due to perceived complexities around implementation, a fear of de-valuing business services and a need for education around late payment terminology. In this context, ease of access to financial tools is an important developmental stage for the industry.
The survey was conducted in 2015, on behalf of Basware , with over 350 key decision makers in 43 countries globally. Industry sectors surveyed include public sector, retail, hospitality/ leisure, creative services, business services, manufacturing, IT/ technology, financial services, and other.
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