What is delayed payment ?
A delayed payment is an invoice that has not been paid by its due date, creating a gap between expected and actual cash receipt.
Delayed payment occurs when a customer does not pay an invoice by the agreed due date. Persistent delayed payments increase DSO, strain cash flow, and may eventually become bad debt if left unresolved.
Example: A SaaS company with Net 30 payment terms finds that 20% of its enterprise customers consistently pay 45 to 60 days after invoice. The AR team introduces automated reminders at Day 15 and Day 25 to reduce payment delays.
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