Invoier's Payment Time Index maps out to what extent Swedish companies pay on timeFintech company Invoier's Payment Time Index shows that August is the month when larger companies are the latest with their payments. On average, each invoice is paid 3,5 days late, which can have a negative impact on small and medium-sized companies with larger companies as clients. The trend is recurrent and can be displayed yearly as of 2016, when the index started measuring.
Large companies have most delayed payments
Larger companies, with more than 250 employees, are constantly late with payments all months of the year. But in August each year they are even later, increasing relatively with 143% to the yearly average, the index shows. The index is based on more than 45 000 companies and over 1,5 million invoices between Swedish companies.
It has long been a well-known issue that larger companies, in practice, are using smaller companies as financiers through long payment terms and delayed payments. For the smaller companies this often contributes to serious liquidity problems, which can hinder both growth possibilities and new job openings.
Late payments per monthThe uneven competitive situation has been the basis for the decision of a new legislation in Sweden, which was introduced on March 1st, 2022. The new law requires larger companies to report on agreed, as well as actual, payment times. All collected data will then be publicly available in an open database.
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