Medius’ study reveals that businesses adapt supplier payment behaviour amidst COVID-19

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Cloud-based spend management solutions provider, Medius’ analysis has revealed that businesses have changed their method of paying supplier invoices during the COVID-19 pandemic. The study has shown that many have changed supplier payment routines to manage cash flow and supply chain uncertainties. It pointed out that companies who have a healthy cash flow are paying quicker while those with limited cash reserves are paying later.

“Medius empowers businesses with the visibility and control buyers, and suppliers need to agree and execute on optimal payment terms during this turbulent time, helping to minimize supply risk and financial impact on the community as a whole,” said Daniel Saraste, SVP Product Strategy and Innovation at Medius.

Medius stated that it compared the due dates on the invoices with the actual payment dates, which revealed that many companies have changed their payment behaviour during the spring of 2020 by either increasing or decreasing their days payable outstanding, (DPO). This suggests that businesses are using the DPO metric to guide decisions on supplier payment procedures to adapt to the specific challenges caused by the pandemic.

The invoice data has shown that supplier invoice volumes have been relatively stable as compared to last year and their invoice transaction values also report at the same level as 2019. Medius’ CEO Per Åkerberg, commented, “The stability in invoice volumes and transaction values suggest that our customers are managing their businesses during the current situation without major disruption. We understand, of course, that some industries have been hit hard by the pandemic but we’re pleased to see that many businesses using our cloud-based solutions are well-placed to cope during these challenging times.”