Free ToolsCost of Late Payment Calculator

Cost of Late Payment
Calculator

Reveal the true cost of late-paying customers — from lost interest to admin overhead to missed opportunities. See what late payments are really costing your business.

Calculate your late payment costs
Average Outstanding Invoice Value (AED)
Rent, salaries, insurance, subscriptions — costs that don't change with volume
Average Days Late
How many days past the due date
Late Invoices per Month
How many days past the due date
Your Cost of Capital (% annual)
Interest rate on your credit line or opportunity cost
Hours spent per payment follow up
Interest rate on your credit line or opportunity cost
Hourly Rate of Collections Staff (AED)
Calculate True Cost
Late Payment Cost Analysis
Late payments are costing your business AED {amount} per year — that's AED {amount}/12 every month going to waste.
Total Annual Cost of Late Payments
AED {amount}
💸 Cost Breakdown (per month)
Interest / financing cost
AED {amount}
Admin & follow-up costs
AED {amount}
↳ {hour}h × AED {amount}/hr = AED {amount} per follow-up × {quantity} invoices
Opportunity cost (capital locked up)
AED {amount}
Total monthly cost
AED {amount}
📊 Key Metrics
Cash trapped in late invoices
AED {amount}
Effective cost per late invoice
AED {amount}
Cost as % of invoice value
{percentage}%
Eliminate Late Payment Costs with Comfi
Instead of waiting for late payments, get paid within hours using Invoice Discounting. Or offer your buyers B2B BNPL — they get terms, you get paid on Day 1, without collections hassle.
Get Started

The Hidden Cost of Late Payments for UAE Businesses

Late payments are one of the biggest cash flow killers for SMEs in the UAE. According to a 2024 Atradius survey, 49% of B2B invoices in the UAE are paid late, with the average delay being 25–40 days past the agreed terms. The cost goes far beyond just interest.

Three Types of Late Payment Costs

1. Direct Financing Costs

When cash is stuck in overdue invoices, businesses often need to bridge the gap with overdrafts, credit lines, or supplier credit — all of which carry interest charges. Even if you don't borrow, the money has an opportunity cost (what it could earn elsewhere).

Interest cost = Invoice value × (Annual rate ÷ 365) × Days late
2. Administrative Costs

Chasing late payments consumes real resources: staff time on follow-up calls and emails, management oversight, accounting reconciliation, and sometimes legal fees. Each overdue invoice may require 2–5 follow-up contacts at an estimated AED 100–250 per contact cycle.

3. Opportunity Costs

Capital locked in late receivables can't be used for:

• Taking on new orders (especially if you need to buy inventory)
• Taking early payment discounts from your own suppliers
• Investing in growth initiatives 
• Building cash reserves for opportunities

Late Payment Statistics in the UAE

• 49% of B2B invoices are paid late (Atradius 2024)
• Average payment delay: 25–40 days beyond agreed terms
• 67 days average total collection time for UAE SMEs3–5% of receivables become bad debt annually
• 3–5% of receivables become bad debt annually
• 28% of SMEs report cash flow problems due to late payments

How to Reduce Late Payment Impact

Offer early payment discounts
Use our Early Payment Discount Calculator to model the cost
Invoice Discounting
Sell your invoices to Comfi and get paid within hours
B2B BNPL for buyers
Let Comfi handle buyer credit and collections
Automate follow-ups
Systematic reminders at 7, 14, and 30 days past due
Credit checks
Assess buyer creditworthiness before extending terms
Get paid on time, every time

With Comfi, you receive cash within hours — no more chasing late-paying customers.

Get Started
⚠️ UAE Late Payment Facts

49% of B2B invoices paid late
25–40 days average delay
67 days avg collection time
28% of SMEs affected
3–5% become bad debt

Comfi Products
Invoice Discounting
Buy Now Pay Later
Dealer Financing
Related Tools
Invoice Discounting Calculator
Cash Conversion Cycle Calculator
B2B BNPL Revenue Calculator
Case Studies
See how businesses like yours are using Comfi to unlock growth.
Explore our 

case studies
See what Comfi can do for you
Learn how Comfi can help you unlock working capital so you can grow without delays.
Get Started

Frequently asked questions

Contact Us

What's a typical cost of capital for UAE SMEs?

Most UAE SMEs face a cost of capital between 8–15%. Bank overdraft rates are typically 8–12%, while trade credit or alternative financing can be 12–18%. If you're not borrowing, use your best alternative investment return as the opportunity cost (typically 6–10%).

Can I charge interest on late payments in the UAE?

Yes, you can include late payment penalty clauses in your contracts. Under UAE Commercial Transactions Law, you may charge interest on overdue commercial debts. However, enforcement can be difficult and may damage customer relationships. A better approach is to prevent late payments entirely with solutions like Comfi's B2B BNPL.

What is the admin cost estimate based on?

The admin cost covers staff time for follow-up calls and emails (typically 2–5 contacts per overdue invoice), management escalation, accounting reconciliation, and credit control overhead. Studies suggest this ranges from AED 100–250 per overdue invoice per follow-up cycle. Adjust the number based on your team's costs.

How does Invoice Discounting solve late payments?

With Comfi's Invoice Discounting, you sell your invoices and get paid within hours, before the due date even arrives. Whether the customer pays on time or late, you've already received your cash. The late payment risk shifts to Comfi.

What's the difference between late payments and bad debt?

Late payments are invoices that are paid eventually, just past the agreed date. Bad debt is when invoices are never collected and must be written off. This calculator focuses on late payment costs, but bad debt (typically 2–5% of receivables) is an additional risk. Comfi eliminates both — you get paid on Day 1.