In 2025, wholesalers across Australia and New Zealand are facing mounting pressure from overdue invoices. The surge is not isolated—it reflects systemic cash flow challenges up and down the B2B supply chain. Fortunately, smarter strategies and automation tools like PencilPay are emerging as vital lifelines.

Overdue Invoices: A Regional Snapshot

Australia

• The Atradius 2025 Payment Practices Barometer reveals that more than half of all B2B invoices are now overdue, with an average DSO (Days Sales Outstanding) of around 42 days. Bad debts also hit just over 10% of invoice value.AtradiusAtradius
  
  
• Some sectors face even sharper pain: CreditorWatch flagged a 68.1% surge in payment defaults year-on-year and a business failure rate rising to 4.95%. Construction, distribution, and services sectors are particularly hard-hit, with overdue notices affecting up to 96% of large businesses and 74% of small businesses.The Australian
  
  
• These late payments prompted many firms to shorten terms, require advance payments, or even reject clients with poor payment histories.The Australian
  
  

New Zealand

• Xero’s Small Business Insights show the cost of late payments soared by 81% between 2021 and 2023, jumping from NZ$456 million to NZ$827 million.Xerointerest.co.nz
  
  
• Late payments lock vital capital away from small businesses, undermining their ability to grow in an inflationary, high-interest environment.Xero
  
  

Why This Matters for Wholesalers

1. Cash flow choke-point
   Overdue invoices mean slower inflows—even when stock has already been dispatched.
   
   
2. Escalating risk
   Rising bad debts directly cost margin. In Australia’s case, bad debts affecting ~10% of invoices are erasing profitability for many wholesalers.AtradiusThe Australian
   
   
3. Administrative drain
   Manually chasing payments is time-consuming. Atradius noted that over 50% of businesses ramped up chasing efforts, tapping into bank loans or invoice financing just to stay afloat.AtradiusAtradius
   
   
4. Widespread impact
   The problem spans sectors: agri-food, construction, steel—no industry is immune.AtradiusThe Australian
   
   

Three Actions Wholesalers Can Take Now

1. Automate Credit Approvals & Secure Payment Methods

Instead of manual credit vetting and chasing, deploy a branded digital credit application (like PencilPay) that screens risk, captures card or bank payment details, and links terms directly to customer profiles.

2. Enforce Risk-Based Terms

• Require deposits (20–50%) for new or high-risk accounts.
  
• Shorten payment terms for new customers (e.g., Net 30 to Net 14).
  
• Set up milestone or dispatch-based billing to reduce unsecured receivables.
  
  

3. Automate Collections & Reduce Admin Load

Use tools like PencilPay to trigger reminders, retries, and instalment plans automatically. This not only accelerates payment but turns collections into a predictable, low-touch process.

Why This Works—with PencilPay

By integrating credit applications, payment method capture, and automated collections, PencilPay helps wholesalers:

• Eliminate manual chasing and follow-ups.
  
• Align credit terms to customer risk—without losing sales.
  
• Secure cash flow predictably—even in high-overdue environments.
  
  

Final Word

Overdue invoices are surging across Australia and NZ—costing businesses heavily. But wholesalers aren’t helpless. The smartest players are turning the tide with automation, risk-aligned terms, and technology.

By acting now, you can shield your business from liquidity shocks, reduce admin burden, and keep operations running smoothly.