Navigating Cash Flow Risk: Key Takeaways from Intrum’s European Payment Report 2025

Working Capital Hub's Point of View

Intrum’s 2025 European Payment Report confirms what we see daily: late payments are no longer just a nuisance, they are reshaping how businesses think about growth and resilience.

Our take is clear – working capital discipline must move from the back office to the boardroom.

Companies that embrace receivables as a strategic lever, and deploy AI to close the payment gap, won’t just protect liquidity – they’ll set the pace for Europe’s recovery.

Want the full picture?

Read Intrum’s European Payment Report 2025 and explore the complete findings.

Access the report on Intrum’s website below:

Introduction

Intrum’s European Payment Report 2025 delivers deep insights into business payment behavior across 25 European countries.

Key findings include persistent late payments, sweeping risks to SMEs, AI’s emerging role in managing payment delays, and how revenue shortfalls could threaten up to 10 million businesses and 40 million jobs – highlighting urgent imperatives for efficiency and cash flow resilience.

Core Strategies to Accelerate Change

1. Late Payments Are Still a Major Threat

Despite improvements since the pandemic, payment delays persist – businesses report that around 11% of their revenues are paid late.

More than one in three executives (35%) even says that payment delays remain as bad today as they were during the extreme economic disruption of the pandemic

This chronic delay continues to strain liquidity and disrupt operations across sectors.

2. Millions of Businesses and Jobs at Stake

Latest research reveals that, on average nearly one in four (23%) leaders fear they could be forced to shut down within the next two years if economic conditions fail to improve.

Up to 10 million European businesses could face closure, equating to a potential loss of 40 million jobs.
This risk is especially steep for SMEs, which depend heavily on timely receivables to survive and grow.

3. AI Adoption in Payments – Growing, But Uneven

Around 59% of businesses are already using AI in their payments management, with an additional 32% planning to invest.
Executives see AI as a force multiplier – 58% believe it will significantly improve late-payment management, up from 50% the previous year.

3. Concrete Benefits of AI Are Emerging

Among adopters, 25% have seen improved efficiency, and 20% have experienced fewer late payments.
Yet barriers remain: only 22% of companies believe their customers actually prefer AI during payment discussions – despite younger consumers showing more comfort with bots in sensitive contexts.

Why These Insights Matter

Strategic Risk Signals: The continued prevalence of late payments signals persistent systemic risk – especially for SMEs.

Economic Stakes: The scale of potential job losses and business failures offers a stark warning for policymakers and industry leaders alike.

Technology as a Recovery Lever: AI isn’t just buzz – its adoption is already delivering efficiency and cash flow improvements where applied.
Entrenched Resistance: Cultural hesitations toward AI still hold back wider benefits, underscoring the need for more deliberate change management.

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Turn Receivables Data into Insights!

1. Prioritize Receivables Efficiency

Track late-payment exposure and prepare contingency plans, particularly if your business serves SMEs or has client concentration risk.

2. Experiment with AI Smartly

Start small – automate reminders, routinize reconciliations, or deploy bots for routine client queries – to unlock efficiency while easing adoption.

3. Address Customer Concerns Directly

If you’re using AI, proactively communicate its role to clients. Tailor approaches where human interaction remains necessary.

4. Advocate for Regulatory Support

Given the broad economic risks, there’s a strong case for public policy that encourages timely payments, supports digital infrastructure, and protects vulnerable businesses.

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