5 Red Flags That Customer Late Payments Will Increase

This is the credit control equivalent of a mood swing.

When a customer’s Days Beyond Terms (DBT) goes up and down every month, that’s a huge red flag. You might see them pay 5 days late for a while, then suddenly jump to 20 or 30 days late, only to pay on time the next month and repeat the cycle all over again.

This type of erratic payment pattern often points to unstable cash flow. It suggests the customer might be juggling payments based on who shouts the loudest. And if you're not shouting, you're at the bottom of the pile.

What’s alarming is that most businesses misread this. In our late payments study, only 3 percent of respondents correctly identified erratic DBT as a sign of financial stress. That means the vast majority are missing this critical cue. 

With Creditsafe’s business credit reports, you can spot these patterns early. Our reports track DBT monthly and highlight any major fluctuations so you don’t have to guess. You’ll know which customers are becoming unpredictable and which ones are quietly managing their payments just fine.

It’s one thing to be late. It’s another to be later than everyone else in your space. 

When a company’s DBT is well above the industry average, that’s not just a one-off issue. It’s a sign they’re struggling more than their peers and that could put your invoices at serious risk.

This is where context really matters. A DBT of 45 might not sound too bad on its own. But if the industry average is 20, that’s a big gap. You need that comparison to fully understand what you’re dealing with.

That’s why Creditsafe reports include industry benchmarks for every company. You can instantly see how a customer stacks up against others in their field. If they’re consistently lagging behind, it’s probably time to review their terms and exposure.

Once invoices hit 91 days overdue, the odds of getting paid start to drop fast. 

If you’re seeing more and more of a customer’s outstanding bills falling into that 91 plus day bracket, you’re looking at a serious collections issue. This isn’t just about delayed payments anymore. This is about money that may never come in.

And that’s where things get costly. In our study, 32 percent of businesses reported losing between 5 and 30 percent of their annual revenue to bad debt. That’s a staggering amount of preventable loss.

Creditsafe’s business credit reports break down outstanding balances by age, so you can clearly see how many of your customer’s bills are edging into that danger zone. You’ll know who needs a follow up and who might need a more serious collections plan.

This one is a slow burn.

You might not notice it right away. A few overdue bills here and there don’t always trigger alarm bells. But when you zoom out and look at the full 12-month picture, a pattern can start to emerge.

If the number of overdue invoices is steadily increasing, that tells you your customer is falling behind. Maybe their internal processes are a mess. Maybe their business has taken a hit. Either way, it means you’re at growing risk of being paid later and later or not at all. 

Even more concerning? Only 27 percent of businesses in our study review customer payment data monthly. And 14 percent never check it at all.

Creditsafe makes it easy to keep tabs on overdue trends with our built-in monitoring alerts. You’ll get notified when a customer’s payment behavior starts slipping so you can take action early and avoid surprises.

When late payments hit your business, they don’t just mess with your cash flow. They steal your time. They stretch your team. They force you to make tough choices about who you can pay and when. 

But the signs are there. You just need to know where to look.

Using Creditsafe’s business credit reports, you can spot risky customers long before they become a problem. You’ll have full visibility into DBT trends, overdue balances, industry comparisons and so much more. You’ll see red flags others miss and make decisions with confidence.

But hang on. Why do you even need a credit report for this? Maybe you’re already getting trade references.

Here’s the thing. Trade references are usually handpicked. They’re from companies that get paid like clockwork. Think phone suppliers or landlords. But those don’t always show you the full picture. 

Creditsafe’s DBT data pulls from thousands of real-world payment experiences across a broad range of suppliers. It’s more impartial. More honest. And it tells you how a company really behaves when cash is tight.

The signs of strain show up in the small stuff. Cutting back on the guy who waters the plants. Scrapping the free coffee. It’s all about the hierarchy of payments. And Creditsafe helps you see where you sit on that list.

If you’ve ever been blindsided by unpaid invoices, now’s the time to take control. 
Run a free business credit check today and see exactly who you’re doing business with.

Because getting paid shouldn’t feel like a guessing game.