Cash Flow Problems by Industry: Small Business Stress Index 

Cash Flow Problems by Industry: Small Business Stress Index 

Key Findings 

• Construction faces the highest cash flow stress due to retainage (a portion of payment withheld until project completion), long payment cycles, and payment-related project risk 

• Staffing experiences severe pressure from weekly payroll combined with 30 to 60+ day payment timelines 

• Trucking faces consistent strain from upfront operating costs and ~40 day payment cycles 

• Service businesses experience widespread delays, with roughly half of B2B invoices paid late 

Waiting to get paid is a reality across nearly every industry, but the level of strain those delays create is not the same for every business. 

For some industries, delayed payments are an inconvenience. For others, they create ongoing financial and operational pressure that affects hiring, project timelines, and long-term growth. 

This Small Business Cash Flow Stress Index evaluates how payment delays impact different industries based on timing, cost structure, and operational risk. It also highlights how cash flow problems by industry vary depending on how businesses earn, invoice, and get paid. 

What Is the Small Business Cash Flow Stress Index? 

The Small Business Cash Flow Stress Index measures how severely delayed payments impact businesses across industries based on four key factors: payment timing, upfront costs, payroll pressure, and operational disruption. Cash flow problems by industry vary based on these factors, which determine how much pressure delayed payments create. 

How the Index Is Measured 

Each industry is evaluated based on the following: 

Payment Cycle Length 

How long businesses typically wait to receive payment after invoicing 

Upfront Cost Burden 

Whether businesses must pay for labor, fuel, or materials before receiving payment 

Payroll Timing Pressure 

How frequently payroll must be met compared to when revenue is received 

Operational Impact 

How payment delays affect suppliers, timelines, capacity, and customer delivery 

Industry Rankings: Where Cash Flow Stress Is Highest 

#1 Construction Industry: Severe Cash Flow Stress 

Construction ranks highest due to structural payment delays built into the industry. 

Projects often involve layered payment chains, approval processes, and retainage, where 5% to 10% of each payment is withheld until project completion. 

The financial impact is significant. Payment delays act like a hidden 14% cost on construction projects and are estimated to cost the industry $299 billion annually, according to the Rabbet 2025 Construction Payments Report.  

Cash flow stress in construction does not just affect finances. It directly influences which projects businesses are willing to pursue, as contractors often avoid opportunities where slow payment could create additional cash flow risk. 

• 91% of general contractors consider an owner’s payment reputation when bidding (Rabbet: https://rabbet.com/reports/construction-payments-2025) 

• 88% have declined to bid on projects due to slow payment concerns (Rabbet: https://rabbet.com/reports/construction-payments-2025) 

Together, these factors make construction one of the most cash flow-sensitive industries. 

#2 Staffing Industry: Very High Cash Flow Stress 

Staffing companies face one of the most difficult timing mismatches of any industry. They are responsible for weekly payroll, but often wait 30 to 60 days or longer to receive payment from clients. 

Industry data shows: 

• Median payment timelines for staffing firms are approximately 35 days. (Staffing Industry Analysts: https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/typical-payment-timeline-staffing-firmsmsps) 

• Many clients extend terms beyond 45 days. (Staffing Industry Analysts: https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/typical-payment-timeline-staffing-firmsmsps) 

• Some stretch payments to 60 to 90 days or more. (Advance Partners: https://www.advancepartners.com/blog/increasing-pay-cycle-terms-and-the-effects-on-staffing/) 

This creates a consistent gap between when wages are paid and when revenue is received. 

The result is ongoing pressure to: 

• Cover payroll with limited cash reserves 

• Rely on credit or financing 

• Limit hiring or new contracts 

For staffing firms, cash flow stress is not occasional; it is built into the business model. 

#3 Trucking Industry: High Cash Flow Stress 

Trucking companies operate with constant upfront expenses. Fuel, driver wages, maintenance, and insurance must all be paid before invoices are collected. 

At the same time, small and mid-sized fleets wait an average of 40 days to receive payment, according to WEX’s The Fleet Factoring Advantage Ebook. 

This creates a continuous cash flow cycle where businesses must fund operations long before revenue is received. 

Because margins are often thin, even modest payment delays can: 

• Reduce profitability 

• Increase reliance on credit 

• Limit the ability to scale 

The trucking industry’s stress comes from the combination of steady expenses and delayed revenue. 

#4 Service Businesses: Moderate but Widespread Stress 

Service-based businesses typically have lower upfront costs than construction or trucking, but they are still heavily exposed to payment delays. 

The Atradius U.S. Payment Practices Report found that roughly half of B2B invoices in the U.S. are paid late, with many extending well beyond standard 30-day terms. (Atradius U.S. Payment Practices:) 

Because services are often delivered before invoicing, revenue can remain tied up in accounts receivable for extended periods. 

This leads to: 

• Inconsistent cash flow 

• Delayed reinvestment 

• Slower growth 

While individual projects may carry less financial risk, the frequency of delayed payments creates widespread pressure across service businesses. 

What the Data Shows Across Industries 

Timing Mismatch Drives the Highest Stress 

Industries with the greatest gap between when expenses occur and when payments are received experience the most pressure. 

Weekly payroll, combined with 30- to 60-day payment cycles, creates one of the clearest risk factors. 

Upfront Costs Amplify Payment Delays 

Industries that must pay for labor, fuel, or materials before receiving payment feel the effects of delays more quickly and more severely. 

Payment Delays Change Business Behavior 

Across industries, delayed payments force businesses to make decisions that affect growth and operations. 

• 42% of businesses struggle to meet financial obligations due to delayed payments. (Atradius: https://atradius.us/dam/jcr:e6d39770-5f80-44d0-9117-f8a39388a605/payment-practices-barometer-north-america-us-en.pdf) 

• 40% delay payments to suppliers (Atradius: https://atradius.us/dam/jcr:e6d39770-5f80-44d0-9117-f8a39388a605/payment-practices-barometer-north-america-us-en.pdf) 

• 27% delay expansion plans. (Pathward Small Business Survey: https://www.pathward.com/news/small-businesses-appear-optimistic-about-growth-despite-critical) 

• 25% miss opportunities entirely. (Pathward Small Business Survey: https://www.pathward.com/news/small-businesses-appear-optimistic-about-growth-despite-critical) 

Why Cash Flow Stress Matters for Growth and Stability 

Over time, these shifts in behavior change the trajectory of the business. Companies are forced to balance immediate financial stability with long-term growth, often at the expense of both. 

As the data shows, many businesses struggle to meet financial obligations in the short term while also delaying expansion and turning down opportunities. This creates a constant tension between staying operational and scaling forward, making cash flow stress a significant risk across industries. 

How Businesses in High-Stress Industries Adapt 

In addition to delaying expenses and new commitments, businesses often bridge the gap between expenses and incoming cash by using credit cards, loans, or lines of credit. 

While these tactics can stabilize cash flow in the short term, they introduce tradeoffs such as higher financing costs, strained supplier relationships, and reduced operational flexibility. 

How Invoice Factoring Supports High-Stress Industries 

Invoice factoring is most commonly used in industries where cash flow is most strained. It is a financing method in which a business sells its unpaid invoices to a funding provider for immediate cash, rather than waiting for customers to pay. 

By converting unpaid invoices into immediate working capital, businesses can: 

• Meet payroll on time 

• Cover operating expenses 

• Take on new work without waiting for payment 

This is especially valuable in industries such as staffing, trucking, and construction, where the gap between earnings and revenue is difficult to bridge. 

Closing the Gap 

Payment delays are not just a financial inconvenience. For many businesses, they are a defining constraint on growth. 

Understanding where your industry falls on the Cash Flow Stress Index can help identify the level of risk and the need for a more predictable cash flow strategy. 

For businesses operating in high-stress industries, solutions that accelerate revenue access can provide the stability needed to operate, grow, and compete with confidence. 

Factor Finders helps businesses connect with trusted factoring providers who understand the unique cash flow challenges of industries like staffing, trucking, and construction. By comparing options and finding the right fit, businesses can access working capital faster and reduce the pressure created by delayed payments. 

Talk to a factoring specialist today to see how you can close the cash flow gap and keep your business moving forward.