In 2025, benchmarks for debt collection are under intense scrutiny as late payments, supply chain disruptions, and economic headwinds conspire against business cash flow. For exporters, importers, lawyers, and credit risk managers, the latest data is no longer about predicting risk—it's about measuring performance that matters. This article examines where debt collection standards stand today, what recent reports show, and how that affects global trade.
Global Performance Trends Since 2023
Since 2023, data across OECD, EU, UK, and emerging markets indicate a significant deterioration in payment performance. For example, the EU Payment Observatory's 2023 Annual Report found that more businesses are reporting problems due to late B2B payments than at any time in the previous five years. Enterprises exporting goods (with exports making up between 0–50% of turnover) are particularly affected. Meanwhile, SMEs in OECD countries noted payment actualization is on average 13 days slower than the agreed terms. (OECD, Financing SMEs and Entrepreneurs, 2024)
Sectoral and Regional Variations
Late payment patterns are not uniform. The UK's “Late Payments Research” (2024) reveals that construction and pharmaceutical sectors experience among the highest delays, especially among small businesses, whereas large firms in services tend to perform better. Australia shows 11% of small firms have invoices more than 60 days overdue, while large companies show 6%. In the UK, small businesses waited on average over 29 days to be paid in Q2 2024—up by over a week compared to earlier quarters.
Drivers Behind the Shift in Debt Repayment Standards
A combination of macroeconomic pressures has stretched payment cycles. Rising inflation and interest rates reduce liquidity among buyers; supply chain bottlenecks force invoice disputes; trade disruptions fueled by geopolitical tensions push cross-border payment and documentation delays. Add to that weaker enforcement regimes in some jurisdictions and less regulatory oversight. These together create compounding delays that exceed industry standard net-30 or net-45 terms by 30–50%.
Impact on SMEs and Trade Finance Access
For small- and medium-sized enterprises, late payments are not just delayed cash—they translate into restricted access to credit. EU-based research shows late payers drawn into credit rationing, where banks impose stricter loan terms, raising cost of capital. In parts of Africa and LatAm, delays of 60–90 days are common, even when net-30 terms are contractually agreed. For exporters, longer payment cycles increase financing costs, force reliance on factoring or export credit insurance, and can distort pricing for new deals.
Recovery & Legal Trends in 2025
New regulations are gaining ground. The UK is pushing through reforms to force disclosure of payment practices by large corporations: payment terms may be reduced from 60 to 45 days, and late payment metrics will become part of mandatory annual reporting for big companies The EU is considering stronger enforcement of late payment directives and requiring public authorities to report performance by time-delays (1–30 days, 31–60, 61–90). On the tech front, automating invoice processing, using AR platforms and deploying predictive analytics are seen as differentiators—companies with advanced AR automation report up to 10% improvements in on-time collections.
Benchmark Numbers & Recovery Expectations
Fresh B2B debts (less than six months old) recovered by high-performing agencies often see success rates between 70% and 90%. As debt ages past six or twelve months, recovery rates typically fall sharply, often into the 30–50% range. Market value for global debt collection services is estimated at USD 30.5 billion in 2025, with Europe representing over 30% of that revenue, and Asia Pacific showing highest compound annual growth forecasts (approx. 5%) over the next 5–8 years.
Outlook: What to Expect Into Late 2025 and 2026
Debt collection benchmarks will tighten for compliant companies while lagging performers face pressure. Key developments will include shorter statutory payment terms, stricter regulation on disclosure of payment behavior, and expanded use of digital tools in AR. Regions with weak legal frameworks may lag behind, increasing risk for cross-border trade. Exporters and credit risk managers who align pricing, contract terms, and financial risk assumptions to current benchmark performance will have a competitive edge.
