Understanding the Impact of Late Payments on Swedish SMBs

Swedish small and medium-sized businesses (SMBs) are increasingly struggling with liquidity issues primarily due to late payments and extended payment terms. Ola Laurin, CEO of Intrum Sweden, reported that a significant 56% of companies are now accepting longer payment terms to maintain customer relationships, indicating a worrying trend amidst an otherwise improving economy.

This challenging landscape is emphasized in the annual European Payment Report, which suggests that many SMBs might face worsening conditions regarding late payments. Intrum is responding to this growing concern by offering comprehensive solutions aimed at improving cash flow and business liquidity. Their approach includes automating invoice management processes, which can help alleviate administrative burdens and ensure that businesses receive their payments on time.

Key strategies include using smart digital distribution methods such as web invoices with payment links and implementing timely reminders for outstanding payments. Laurin highlights that effective invoicing not only facilitates quicker payments but also lays opportunities for upselling and enhancing customer relations.

By optimizing invoicing and accounts receivable processes, Intrum empowers its clients to free up capital and foster growth, crucial for the sustainability of SMBs in Sweden. The firm’s nearly century-long expertise in the sector equips it to support companies in navigating these liquidity challenges effectively.