Payment Delays: Their Reasons, Scale and Consequences

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