Stop Ignoring Hidden Drag on the Global Economy: Nearly 40% of Payments Are Locked in Payment Delays, According to Sidetrade Data Lake

Core Insights - Late payments now account for 37% of the payment cycle, indicating that contractual payment terms do not dictate payment timing, but rather how invoices are managed by suppliers [3][5][12] - The Sidetrade Data Lake aggregates data from over 42 million buying companies, representing more than $8 trillion in B2B transactions, providing a comprehensive view of payment behaviors [3][21] - In a volatile macroeconomic environment, B2B payment behavior reflects buyers' efforts to optimize working capital, leading to commercial tensions and cash-flow risks [4][5] Global Payment Behavior - Businesses globally took an average of 51 days to get paid in 2025, with 37% of the days-to-pay cycle occurring after the payment due date [6][5] - The Netherlands sets a global benchmark with an average of 40 days-to-pay, including only 12 days of delay, while India records an average of 77 days-to-pay due to 43 days of delay beyond agreed terms [19] Regional Insights - Europe outperforms the United States in payment discipline, with average delays of 18 days compared to 29 days in the U.S. [9] - In the U.S., the Financial Services, Insurance, and Real Estate sectors experience an average delay of 57 days, while Manufacturing and HR Services have shorter delays of 24 days [7] Industry-Specific Payment Delays - Payment delays vary significantly by industry, with the average payment delay in Germany at 15 days, while France averages 19 days, with variations across sectors [10][11] - The UK averages 21 days of delay, with Life Sciences and Manufacturing being among the slowest [11] Technological Advancements - Sidetrade's AI, Aimie, utilizes a data-driven approach to improve cash collection efficiency, executing over 5.1 million collection actions in 2025 and supporting a 49% increase in cash collection efficiency [18] - The Sidetrade Data Lake continuously captures and standardizes buyer and vendor interactions, enabling reliable domain-specific AI at scale [15][20] Conclusion - The findings highlight that payment delays are structural and exceed statutory limits, impacting cash forecasting and accounts receivable costs [12] - Companies must focus on controlling the Order-to-Cash cycle rather than merely renegotiating commercial terms to address the root causes of payment delays [12][20]