How to improve your liquidity: A guide for businesses

According to Intrum's European Payment Report 2026, 64 per cent of companies say growth is their top priority this year. For many of them, late payment is an obstacle standing in the way. 

This guide explores the latest data trends and insights, what they mean for business liquidity, what your finance team can do to protect cash flow, and where specialist support can make the difference.

The pressure is already beyond sustainable levels

Late payments have always been a friction point in B2B commerce. What has changed is the scale. Intrum's European Payment Report 2026 found that 12.13 per cent of total business revenues are currently being received late, above the 12.08 per cent threshold that businesses themselves say is sustainable. On average, businesses offer their customers 43 days to pay. The actual wait is 63. That 20-day gap is working capital you are financing without having agreed to. 62 per cent of businesses say delays in receiving payment from their own customers force them to delay payments to their suppliers.

Late payment does not stay in one place: it moves through the supply chain, tightening cash positions at every step. 57 per cent of businesses report missing growth targets as a direct result.

Practical ways to strengthen your cash flow

1. Check creditworthiness before you extend terms

   Most businesses find out a customer cannot pay when the first invoice goes unpaid. Running a credit check at the point of onboarding gives you that information before you have committed resources, agreed terms or started work.
   
   Only 39 per cent of European businesses currently do this routinely, according to Intrum's European Payment Report 2026. Knowing the risk upfront shapes everything that follows: the terms you offer, whether you ask for a deposit, and how closely you monitor the account from day one. 

2. Move payment closer to delivery

   The simplest way to reduce the gap between invoicing and receiving payment is to move payment closer to the point of delivery. Send invoices on the day work is completed, state your terms clearly, and where the relationship allows, ask for payment upfront or a deposit in advance.

   According to Intrum’s European Payment Report 2026, 50 per cent of businesses now ask customers to prepay, up from 46 per cent last year. It has become a standard practice, not a sign of distrust.

3. Build a structured receivables management process

   The businesses with the shortest days sales outstanding are rarely the ones with the fewest difficult customers. They are the ones with the most consistent follow-up process. 

   A structured approach means escalation starts as soon as an invoice is issued: a reminder before the due date, a follow-up on the first day overdue, and more formal contact within the first week.

   Segmenting your debtors by size and risk, and reviewing your aged debtors list weekly rather than monthly, keeps the picture accurate and the response timely. 

   According to Intrum’s European Payment Report 2026, 58 per cent of businesses are now taking active steps to improve their payment discipline, the highest share in six years. For businesses managing high volumes of receivables, that consistency is difficult to maintain in-house. That is where a structured external process makes the difference.

4. Make it easy to pay and follow up without fail

   Customers pay faster when the process requires minimal effort. Clear invoices, simple payment options and accessible payment interfaces reduce friction and leave fewer reasons to delay. 

   73 per cent of businesses are currently investing in improved payment interfaces, according to Intrum’s European Payment Report 2026. 

   Automation strengthens the process further. Tools for invoice matching, payment reminders and overdue notifications reduce dependence on manual follow-up and help ensure  every account is acted on at the right time, even when finance teams are busy.

Turning short-term fixes into long-term resilience

Building long-term liquidity resilience means treating credit decisions, collections and liquidity management with the same rigour as your budgeting process. That means clear ownership, consistent processes and regular review, rather than escalation only when something has already gone wrong.

For businesses with significant volumes of receivables, working with a specialist can free up the capacity to manage that properly. Instead of spending time chasing payments, finance teams can focus on the analysis and planning that move the business forward.

If late payments are a recurring pressure on your cash position, Intrum's Invoice & Payment services help businesses get paid on time and reduce days sales outstanding, without adding to the workload of your finance team.