Unpaid invoices are putting significant pressure on the financial health of small and medium-sized enterprises (SMEs) in the Netherlands. According to the latest SME Barometer survey among more than 900 Dutch entrepreneurs, 67% of SMEs experience revenue losses because customers fail to pay their invoices.
On average, 15% of customers pay later than agreed, while around 3% of all invoices ultimately remain unpaid. The resulting financial impact is substantial: businesses report an average annual loss of approximately €20,000 per company due to outstanding payments.
Limited visibility increases payment risks
Despite the financial impact, many entrepreneurs have limited insight into their customers’ payment behaviour. Nearly half of SMEs (47%) say they do not have a clear overview of average payment periods. As a result, payment delays are often identified only at a late stage, reducing the opportunity to intervene before outstanding invoices become problematic.
The lack of proactive credit management remains a challenge. Almost one in five entrepreneurs (19%) take no specific measures to protect their business against payment defaults. For 30% of respondents, ensuring that invoices are paid on time is the biggest challenge within their financial administration.
Digital invoicing adoption remains low
While digitalisation offers opportunities to improve cash flow management, many SMEs have yet to adopt modern invoicing solutions. Only 8% of businesses currently use e-invoicing, while 47% still send invoices by traditional post or email, often without payment links or QR codes.
This reliance on manual processes makes it harder to monitor outstanding receivables and identify potential payment risks at an early stage. Entrepreneurs point to practical barriers as the main reasons for limited automation, including the time required for implementation (33%) and technical challenges related to existing software systems (29%).
€5.6 billion in potential growth capital remains locked
The economic impact extends beyond individual companies. According to Kuno Klumpers, accounting software expert at Exact, the scale of the problem is significant. The Netherlands has approximately 417,000 SMEs with employees. If 67% of these businesses lose an average of €20,000 annually due to unpaid invoices, this represents around €5.6 billion in capital that is not available for investment, innovation and business growth.
Klumpers believes that technology can help businesses address the issue. By combining e-invoicing with automated accounts receivable management, companies can gain real-time insight into outstanding invoices, customer payment behaviour and potential financial risks. This allows entrepreneurs to take earlier action, improve cash flow and reduce the impact of late payments.
For SMEs operating in an increasingly challenging economic environment, strengthening credit management processes is becoming an essential part of protecting profitability and supporting sustainable growth.
You can download the Dutch article of the ‘SME Barometer’ here.
Source: creditexpo.nl
Photo: Shutterstock
