Impact of Late Payments on Small Business Borrowing

This research article explores the relationship between late payments and small business borrowing. It reveals that as late payments increase, small businesses borrow more to manage cash flow gaps. The study highlights key findings, including the significant association between late payments and borrowing, the impact of payment delays on borrowing amounts, and the reliance on non-bank institutions for funding. The findings underscore the importance of reducing late payments to support small busi