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As Clients Take Longer to Pay Bills, Small Agencies Are Feeling the Pressure

Getting paid on time is a worsening struggle for independent shops

Bankrupt, huge dumbbell crushed piggy bank — According to a recent ANA survey, roughly a third of marketers have extended payment terms in the past year.Getty Images

March 12, 2020

Despite expecting more from their agency partners for less, marketers are taking more time to fork over cash for their services, a practice that’s disproportionately affecting smaller agencies with fewer resources.

Payment terms, long a point of contention between brands and agencies, have increased in the past year, according to a recent report by the Association of National Advertisers.

The survey of more than 100 marketers found that 37% have lengthened their payment terms in the past year, while 18% have shortened the wait time for payments.