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New Zealand's small businesses have lost $456 million because payments made to them were late for 45 percent of all invoices generated last year.
Accounting software firm Xero said the average invoice issued by a small businesses was paid 6.3 days, and 8 percent of payments were more than a month overdue.
Small businesses that received 60 to 80 percent of their invoices paid late had 19 percent more "cash flow crunches" than small businesses that were usually paid on time.
"Delays in making repayments can make the difference between a small business remaining open and operational, or making tough decisions about the future viability of the business," Xero New Zealand country manager Bridget Snelling said.
"The pressure of expenses is one of the biggest stressors for Kiwi small business owners, with cash flow already continuing to be impacted by inflation and a decline in discretionary spending as consumers tighten the purse strings."