Payment Delays: Their Reasons, Scale and Consequences

Abstract

The paper discusses theoretical and practical aspects of a relevant and pertinent
issue of the reasons behind late payments in B2B commercial transactions and their
consequences. It aims at identifying reasons for late payments and pinpointing their
economic consequences and costs. It also addresses the scale of the phenomenon,
especially for payments overdue by more than 60 days, considered the most dangerous
for regular performance of enterprises. The paper provides the results of studies on
these aspects quoted in three most important reports by the following companies:
Bisnode D&B, Atradius, Intrum Justitia. It formulates conclusions on both the reasons
and consequences of late payments in B2B commercial transactions.