Late payments have been a structural problem for businesses for more than a decade, but in 2025, the challenge has escalated into a strategic threat. According to recent UK-wide SME finance reports, one in two businesses cite delayed customer payments as the primary constraint on their cash flow, and the average payment delay now sits between 22 and 30 days across key sectors such as construction, professional services, wholesale, and logistics. Despite regulatory efforts and voluntary codes of conduct, the trend hasn’t significantly reversed. 

Why? Because the root of late payments is operational. Businesses face various challenges, such as being disorganised, overloaded, or missing key information. This is where modern receivables technology is finally catching up. 

An excellent example would be Pulse’s DebtorIQ, part of the company’s broader modular solutions. It has emerged as a technology-based solution to the hurdles businesses face, particularly in managing payments and accounts receivable. Unlike traditional credit control tools that simply send reminders or automate chasing, DebtorIQ takes a more nuanced approach: it gives businesses context-rich visibility, data-driven insights, and intelligent workflows that actively reduce operational friction on both sides of the transaction. 

This blog takes a closer look at how DebtorIQ tackles late payments head-on, and why businesses in the UK are increasingly viewing it as a core component of their cash-flow management and accounts receivable strategy for 2025. 

A New Reality for Accounts Receivable in 2025

In 2025, accounts receivable teams face three interconnected pressures: 

• Higher volume of invoices than before, due to the shift to smaller, more frequent billing cycles. 
• Customers are demanding more flexible terms, especially in B2B trades. 
• Rapidly fluctuating cash cycles are driven by the broader economic environment and supply-chain unpredictability. 

Manual processes simply can’t cope with this new rhythm. Even businesses using cloud accounting platforms often find that receivables management remains a stitched-together set of spreadsheets, exported CSV files, and unstructured workflows. DebtorIQ was explicitly built to solve this disconnect. 

What Makes DebtorIQ Fundamentally Unique

Receivables Intelligence, Not Just Receivables Reporting
Where many AR tools tell you which invoices are overdue, DebtorIQ tells you why, and what’s likely to happen next. The platform aggregates debtor-level data from accounting systems, banking data, payment history, and other sources. This creates a debtor profile that goes far beyond the invoice itself. Rather than seeing a list of amounts owed, businesses can see: 

• Which customers frequently delay invoices 
• Which ones are consistently cash-constrained 
• Who pays on certain days of the month 
• Who responds best to reminders 
• Which invoices are at risk before they’re technically late 

This predictive layer means credit controllers can intervene early, often weeks before a payment becomes overdue. 

Early Detection Through Behaviour Insights
Late payments rarely happen without warning. There are usually early signs. DebtorIQ picks up on these indicators and turns them into actionable insights. It monitors behavioural patterns and flags any shifts. It also segments customers based on their payment reliability. 

These insights enable finance teams to intervene before a delay becomes serious. They can spot customers whose risk is increasing and adjust their communication approach when necessary. They can also plan their reminders more effectively. 

This early visibility helps businesses stay ahead of potential issues and prevents overdue invoices from accumulating. Understanding debtor behaviour clearly strengthens the entire receivables process. 

Improved Cash Flow Management
Delayed payments would directly affect a business’s cash flow. Instead of relying on scattered data and outdated Excel sheets, leveraging an AR solution like DebtorIQ would arm businesses with a distinct edge. 

DebtorIQ also automates key accounts receivable processes such as tracking pending invoices, scheduling reminders, and prioritising high-risk accounts. It strengthens cash flow management by reducing delays and helping businesses collect payments faster. With a dependable AR management solution, decision-makers can stay on top of pending or delayed invoices, track repayments and improve collections. 

Practical Advantages: What UK Businesses Can Expect in 2025 

Businesses using DebtorIQ can expect consistent improvements across AR performance: 

Reduced Days Sales Outstanding (DSO)
The most immediate impact would be faster inflows: 

• 7–14-day reductions in DSO within 90 days 
• Major improvements in the predictability of incoming payments 

Lower Bad-Debt Risk
With better debtor visibility, businesses can identify risky customers early and adjust terms before problems escalate. 

Higher Team Efficiency
Credit controllers spend less time: 

• On outdated excel spreadsheets 
• Drafting repeated reminder emails 
• Resolving disputes that could have been avoided entirely 

Smoother Customer Relationships
The system increases clarity and consistency, reducing tension in payment discussions. Customers appreciate the professionalism and are likely to pay faster while improving the relationship instead of jeopardizing it. 

Why DebtorIQ Matters in the Broader Pulse Ecosystem

Pulse has become popular for modernising lending infrastructure in the UK, especially with it’s Unified Lending Interface and Einstein aiDeal: automated underwriting engine. DebtorIQ plays a crucial role in this ecosystem as well, because healthy receivables directly influence a business’s creditworthiness. Thus, businesses that use DebtorIQ can leverage it to communicate in a structured, data-driven method, making funding faster, easier and with better terms. 

In 2025, lenders now prefer to view real-time receivables performance as a core underwriting metric. By improving payment behaviour and increasing predictability, DebtorIQ helps businesses: 

• Qualify for better rates or terms 
• Boost credit confidence 
• Unlock more flexible lending products 
• Reduce the risk of cash-flow crunches during growth 

It’s not just an AR tool; it’s a method to access faster, better funding with reduced friction. 

The Future of Receivables Is Intelligent, Not Aggressive

Late payments have long been a source of systemic frustration in UK business culture. The instinctive solution of “chase harder” has never been the answer. The smarter approach is receivables intelligence: understanding debtor behaviour, predicting risk, preventing disputes, and giving teams the power to act pre-emptively. 

Pulse’s DebtorIQ is one of the first solutions to approach accounts receivable with a data-driven approach. In a business environment defined by volatility, tight margins, and increased financial scrutiny, this shift has become critical. To learn more about Pulse and its powerful solutions, contact us today.