How Volatility is Changing Global Supplier Payment Trends

As market volatility shows no sign of easing, procurement professionals face mounting pressure to reassess supplier payment strategies that balance cash flow optimisation with supply chain stability.

The growing willingness of suppliers to accept early payment discounts presents both opportunities and strategic considerations for procurement teams.

SAP Taulia, a global fintech leader delivering AI-powered working capital solutions, has released its annual supplier survey examining these changes.

The data was collected from 10,854 responses across more than 10,500 unique companies in 129 countries from 5 to 27 November 2025.

Understanding supplier payment priorities

The survey findings present procurement teams with crucial insights into supplier behaviour. Data shows that 66% of respondents said they were more likely to accept a discount on their invoices for guaranteed faster payment, demonstrating a proactive approach to working capital management as global economic pressures increase.

For procurement professionals, this shift signals an opportunity to implement early payment programmes that benefit both parties. However, the data reveals a concerning trend: payment delays are increasing, with only 37% of invoices being paid on time. Global instability is shifting trade priorities, resulting in a steady decline of on-time payments, 42% in 2024 compared to 54% in 2019.

The timeframe for delays is also increasing, as 18% of suppliers are waiting up to 15 days past the due date, compared to 17% in 2024. These delays have significant implications for procurement professionals seeking to maintain strong supplier relationships and ensure supply chain continuity.

External pressures on payment strategy

External economic factors are increasing the need for reliable cash conversion across supplier networks. It was found that 25% of businesses stated that rising tariffs are directly tightening their profit margins. Despite this, payment speed is seen as a higher priority than gaining the full invoice sum, as regular cash flow has more impact on maintaining business operations.

Financial visibility remains poor across many organisations, with 20% of businesses admitting they do not use external sources of finance. Businesses that are using external finance are diversifying their liquidity sources. The top three most used options include virtual or credit cards (22%), early payment programmes (16%) and lines of credit (16%).

Though the number of suppliers who receive early payments from buyers has remained at 3%, the demand for flexible, lower-cost options for immediate liquidity is evident.

Strategic partnership through payment terms

"Across our network, we are seeing that in today's volatile environment, cash flow is increasingly prioritised over price," explains Peddy Hashemi, Global Head of Customer Success at SAP Taulia.

"Suppliers are reassessing every available lever, from early payment programmes to alternative financing to maintain operations and protect supply chain stability. Our research indicates that the decline in on-time payments is continuing, which makes the need for reliable and predictable cash conversion more critical than ever.

"In this context, buyers that can consistently offer on-time or early payment will be recognised not just as customers, but as true strategic partners."

The data demonstrates the growing trend of suppliers actively building their own resilience and balancing their finances, rather than waiting for buyers to dictate terms. For procurement professionals, this means rethinking traditional payment approaches and considering how payment terms could become a strategic tool for supplier relationship management.

Procurement teams that understand and respond to supplier payment needs could gain a competitive advantage. Being able to offer on-time or early payment options could position procurement professionals as strategic partners rather than simply transactional buyers, potentially strengthening supply chain resilience in an uncertain economic environment.