🇦🇪UAE

تأخير تحصيل المستحقات والفواتير المعلقة (Delayed Receivables & Aging Invoices)

2 verified sources

Definition

Equipment rental contracts in UAE typically operate on 30, 60, or 90-day payment terms. Manual invoice verification, AR aging, and collection follow-ups delay cash inflow. Contractors (especially SMEs renting via peer platforms) often delay payments due to project cash flow constraints. Manual AR teams cannot execute timely dunning across hundreds of invoices. Corporate Tax (9%) liability becomes due regardless of collection status, forcing negative working capital cycles.

Key Findings

  • Financial Impact: Estimated AED 260-520 million annually across UAE equipment rental sector (based on AED 6.32B market value × 2-4% working capital drag from 15-30 day DSO extension). Per-firm impact: AED 1.3-2.6 million annually for mid-size rental operators (AED 50-100M revenue).
  • Frequency: Continuous; compounded quarterly (VAT due) and annually (Corporate Tax due).
  • Root Cause: Manual AR aging, lack of real-time payment tracking, absence of automated dunning workflows, delayed invoice delivery in pre-e-invoicing environments.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Commercial and Industrial Equipment Rental.

Affected Stakeholders

Finance Manager, AR Collector, Accounts Receivable Analyst, CFO

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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