An annual supplier survey published earlier this month by working capital management solutions provider Taulia found that these businesses were largely optimistic about their prospects for 2025.
But there was a notable increase in the proportion of suppliers expressing an appetite for early payment options with almost two-thirds saying they were interested in such options to boost cash flow consistency.
One-in-four were interested in taking early payments for every customer and every transaction, while another 19% wanted to do so most of the time.
Just over half of respondents said their buyers typically pay late, a figure that is unchanged from last year but a considerable increase from the 38% recorded in 2019. A significant portion of buyers are paid well beyond due dates, with one-fifth saying their invoices are settled more than 30 days late – including 7% that exceed 45 days. Only 3% said their clients paid early.
According to Ilkim Saracel, Director, Assistant Treasurer at American solar tracker manufacturing company Nextracker, early payment option requests by suppliers are definitely increasing.
“I spent ten years at a global Fortune 500 contractor manufacturer and we had to advertise supply chain finance programmes heavily,” she explains. “Now the demand comes from the suppliers. They are much more educated and really like these programmes.”
However, suppliers to an international footwear brand have shown little enthusiasm for financing solutions that could enable them to receive early payment on their invoices, explains the company’s group treasurer.
“We have proposed a supply chain finance solution at our supplier conferences a number of times in the last 18 months or so and there has been zero take-up or even interest,” he says.
More than half of respondents to the supplier survey said they were ‘very optimistic’ about the business environment this year despite uncertainty over rising tariffs and protectionism.
“We get the tariffs questions a lot from our banks, but the bottom line for us is that we don’t manufacture in any of the countries that the US administration seems to be targeting for higher tariffs,” adds the footwear brand group treasurer.
The most common reasons cited for not using early payment solutions were strong cash positions and high costs. Other factors were tied to business structures, with businesses saying either their billing cycles made early payments difficult, they had a company policy against early payment taking or had already committed their receivables to other financing options.
Levels of optimism varied between countries and continents. In Argentina, optimism increased on the back of new policies aimed at tackling high inflation in the country and the outlook in Spain also increased as the country experiences strong economic growth.
However, it was a different picture in western Europe where sentiment was lower in both Germany and France, reflecting continued geopolitical economic upheaval across the continent.
These businesses also recognise the need to stay agile, adapting their financial strategies to navigate shifting market dynamics. Many are turning to diverse external capital solutions, with around one-in-five using credit cards, followed by lines of credit, early payment on invoices and debt factoring.
“Access to flexible working capital solutions is becoming even more critical,” says Bob Glotfelty, Chief Growth Officer at Taulia. “By unlocking liquidity, these solutions help businesses strengthen their cash flow, adapt to market changes and build resilience across their supply chains.”
