For B2B businesses, managing cash flow depends heavily on how long it takes to turn issued invoices into actual cash. In 2026, stubbornly slow payment behaviours continue to act as a major drag on working capital. But companies investing in accounts receivable (AR) automation are beginning to see measurable improvements — freeing up cash and reducing administrative burden.
Here’s what the data actually shows.
1. The Baseline: What the 2025 B2B Payment Cycle Really Looks Like
Across regions and industries, B2B payment terms and behaviors in 2025 show a persistent pattern:
Average Terms Still Long
Multiple industry surveys indicate that typical B2B payment terms in 2025 still range from 30 to 60 days from invoice date — meaning most businesses expect payment within about four to eight weeks of issuing an invoice.
This aligns with long-standing practice in global B2B markets where extended trade credit has become a tool for maintaining competitive relationships — even in tighter economic conditions.
Late Payments Are Still Common
Despite these terms, a large share of invoices are paid late:
- In some markets, around 35–38% of B2B invoices remain overdue beyond agreed terms.
- In other regions and industries late payment rates sit closer to 40–50%, driven by customer liquidity pressures and internal payment process issues.
The result? Even though businesses agree to payment on, say, Net 30 or Net 45, they often don’t receive funds for significantly longer.
Average Days Sales Outstanding (DSO)
A key benchmark for the true payment cycle is Days Sales Outstanding (DSO) — the average number of days it takes to collect cash after a sale is made.
Recent industry compilations show global average DSO around ~45 days, meaning ~1.5 months between invoicing and payment on average.
What that means practically:
Even if you issue an invoice with Net 30 terms, you’re often waiting an extra two weeks or more to actually receive cash — tying up working capital and constraining spending power.
2. Why Payments Take So Long — The Underlying Drivers
Understanding why B2B payment cycles stretch beyond contractual terms is important:
Common Causes of Payment Delay
According to trends from global payment surveys:
- Customer cash flow issues are a leading factor.
- Invoice disputes (incorrect PO numbers, billing errors) slow processing and payment.
- Manual AR processes make follow-ups and reconciliation slower and less accurate.
When organisations depend on email, spreadsheets, and manual reconciliation, payments that should clear in days stretch into weeks or months — materially impacting the seller’s liquidity.
3. How Automation Is Changing the Game in 2025
As companies struggle with slow payment cycles, more are turning to automation in AR and B2B payments — and the data shows it’s making a measurable difference.
Faster Payments & Shorter DSO
Industry research indicates that businesses adopting AR automation see:
✔ Payments collected 20% faster on average compared with manual processes.
✔ Higher rates of on-time payment thanks to automatic reminders, better tracking, and smoother workflows.
This translates into significant reductions in DSO, meaning companies that automate effectively can unlock cash weeks earlier.
Improved Collection Outcomes
Automation doesn’t just speed up payments — it also reduces friction in collections:
- Automated workflows prioritise delinquent accounts more consistently.
- Electronic invoicing and reminders mean fewer disputes and faster customer responses.
- Tasks like reconciliation, matching, and follow-up that used to chew up AR staff time are handled automatically.
In practical terms, teams can shift from chasing paperwork to managing exceptions and strategy.
Wider Adoption is Becoming Common
About 70% of companies had automated SOME portion of their AR process by 2025, reflecting a global shift toward digital financial operations.
Yet only a fraction of businesses are truly fully automated — highlighting room for further improvement and competitive advantage.
4. What This Means for Wholesale & B2B Sellers in 2026
A New Benchmark for Cash Flow
If your business still relies on manual invoicing and follow-ups:
- Expect actual payment receipt to be weeks later than your contractual terms.
- Plan your cash flow around ~45+ day DSO unless you take steps to change it.
Automation Isn’t Optional — It’s Competitive
Companies that automate AR and B2B payment processes:
- Collect cash faster
- Reduce administrative cost
- Free up working capital for growth
And with competitive digital tools now widely available, the gap between manual and automated performance is widening.
5. Practical Steps to Improve Your B2B Payment Cycle
To shorten your payment cycle in 2026:
- Clarify Payment Terms at Onboarding
Make sure customers understand due dates, early payment options, and penalties for late payment. - Automate Invoicing & Reminders
Use automation to eliminate manual bottlenecks and prompt customers proactively. - Offer Multiple Payment Methods
Fewer friction points mean faster payments. - Use Real-Time Dashboards
Track DSO, overdue invoices, and customer payment behavior in real time. - Consider Credit Automation
Digital credit applications and ongoing scoring tools reduce risk and speed collections.
Conclusion: The 2025 B2B Payment Reality
The true payment cycle in B2B isn’t just the terms printed on an invoice — it’s the actual time to cash. In 2025, that average sits at roughly 45 days or more globally, with a high share of invoices paid past due and a persistent drag on cash flow.
The good news? Automation is a proven accelerator — reducing payment times, improving collections, and giving finance teams back hours in their week.
If you want to improve your cash conversion cycle in 2026, digitising AR and embracing automation isn’t just smart — it’s essential.