Late Payment Culture Must Change: A Call to Action

## A Broken System As the founder of a business that helps companies collect overdue invoices, I have a front-row seat to the late payment crisis. What I see daily is deeply troubling: a system where paying late has become not just acceptable, but expected. ## The Human Cost Behind every overdue invoice is a business owner: - Missing their own payroll - Paying personal credit card interest to cover gaps - Lying awake at night worrying The mental health toll is enormous and under-discussed. ## Why It Persists Late payment culture persists because: 1. **Power imbalance** - Large buyers hold leverage 2. **Weak enforcement** - Legal remedies are slow and costly 3. **Normalization** - "Everyone does it" becomes acceptable 4. **Perverse incentives** - CFOs rewarded for extending DPO ## The Path Forward ### Legislative Action We need: - Mandatory 30-day terms for government contracts (happening) - Real penalties for egregious late payers - Simplified dispute resolution ### Industry Leadership Large companies should: - Commit publicly to prompt payment - Report payment performance transparently - Remove late payment from CFO incentives ### Technology Solutions - Automated invoicing and collections - Real-time payment capabilities - Blockchain-based smart contracts ## My Challenge I challenge every business leader reading this: Review your payment practices this week. If your average payment time exceeds your terms, ask why.