Late payments remain one of the most common challenges for small businesses. While a single overdue invoice may feel manageable, repeated delays quickly affect cashflow, tax obligations, staffing decisions, and overall confidence to grow.

Xero’s 2024 research show that late payments cost New Zealand small businesses more than $800 million each year*.  More recent, February 26, insights showed that the average length of time small businesses waited to be paid in 2025 was 24.8 days^.  When revenue does not arrive as expected, businesses face immediate pressure on working capital, often delaying their own supplier payments or relying on short-term borrowing.

Tax obligations can compound this pressure. GST, PAYE and provisional tax still fall due, even when customer invoices remain unpaid. This mismatch between cash received and cash required can place businesses in penalty situations or require owners to use personal funds to meet commitments.

Centrix is the only credit bureau authorised to receive Inland Revenue (IR) tax default data. Centrix are working closely with Inland Revenue to give businesses greater visibility of outstanding tax debts via business credit reports. Read more here.

Late payment also reduces a business’s ability to plan ahead. When cashflow is unpredictable, it becomes harder to take on new work, invest in staff, or scale operations confidently.

How credit reports help reduce the risk of late payment

A Centrix business credit report gives you clear insight into a customer’s trading history, payment behaviour, credit score, and any signs of financial stress before you extend credit or supply goods and services. With this information, you can set appropriate payment terms, request deposits when needed, and reduce the likelihood of bad debtors.

Using monitoring to stay ahead of risk

Ongoing credit alerts monitoring can identify changes in a customer’s risk profile, such as increased credit enquiries or new defaults. Early visibility means you can adjust terms or pause supply before late payment becomes a significant issue.

Reliable cash flow supports resilience and gives your business the foundation it needs to grow. Understanding the real cost of late payments reinforces the importance of having strong credit processes from the start.

Learn more

Centrix provides real-time business credit reports and credit monitoring tools to help New Zealand businesses reduce late payment risk and strengthen their financial resilience.

Find out more about business credit reporting here: https://www.centrix.co.nz/get-reports/business-credit-report/

* https://www.xero.com/nz/media-releases/late-payments-cost-kiwi-small-business-over-800-million/

^ https://www.xero.com/nz/resources/small-business-insights/latest-new-zealand/