According to the Wall Street Journal, businesses today are taking an average of 58 days to pay their suppliers, up 5.5% from last year.
Though better than it was during the height of the Covid-19 pandemic, when it was taking suppliers 62 days on average to get paid, many companies continue to struggle with paying vendors on time as they try to free up much-needed cash.
![Average Time to Pay the Suppliers](https://planergy.com/wp-content/uploads/2023/05/average-time-to-pay-the-suppliers.jpg)
But delaying supplier payment may be having a much bigger impact on your business than you realize.
While keeping cash on hand is important for cash-poor businesses, it’s important to understand how important a good supplier relationship is to the success of your business.