Corporations delay payment to suppliers from SMEs for 6-9 months

Large companies are increasingly delaying payments to small and medium-sized businesses, Izvestia found out. Waiting for money stretches up to 6-9 months, said Pavel Samiev, chairman of the Opora Russia Committee on financial Markets.

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Business associations specify that delays are often associated with state corporations. However, most often payments are delayed not by the parent structures, but by subsidiaries that act as direct customers for contractors.

Delays are typical for construction, the oil and gas industry, and retail. Problems often arise when working with large developers and federal retail chains, said Daniil Gonenko, associate professor at the Department of Economics and Finance of the Public Sector at the Presidential Academy.

The situation worsened after the key rate increase, Opora Russia noted. Large companies prefer to keep their free funds on deposits: there they earn 15-20% per annum, which covers the possible costs of late fines.

Such delays are critical for SMEs, Daniil Gonenko emphasized. Unlike corporations with reserves and access to credit, small businesses operate on short money cycles. A six-month delay effectively freezes his funds: companies have to take out expensive loans or reduce production and staff. All this increases the risks of bankruptcy, disruption of supplies and the withdrawal of part of the business into the shadows.

Read more in the exclusive Izvestia article:

Debt time: corporations do not pay suppliers from SMEs for 6-9 months.