According to a GEP-commissioned survey of U.S. and European business leaders, $4 trillion of revenue was lost to supply chain disruptions in 2020. That number is staggering even without the shadow of more supply chain chaos to come. Every time things look to be settling down, something happens to push a return to “normalcy” farther out of reach.

Supply chain inconsistency remains a big issue, and everyone is struggling for equilibrium as the chaos continues. What are the effects of continuous disruption on B2B markets, payments, and commercial credit ratings?


It’s easy to give into frustration and blame your suppliers for supply chain problems, but they also have it pretty rough in this economic environment. Lack of inventory and broken professional trust are problematic for any supplier, and ongoing problems can cause major revenue loss, struggles with predicting cash flow, and unanswered questions up and down the supply chain.


As suppliers struggle to accommodate disruption and fulfill their obligations, gaps in their receivables are getting dangerous, and late payments are more common than ever. Suppliers don’t always have the leverage they need to enforce payment deadlines, which can have negative effects on all parties involved in a transaction.

Establishing a transparent process helps resolve payment problems arising from supply chain disruption. Technology can help suppliers and customers provide transparency regarding orders, purchases, invoices, and payments, so they can easily track cash flow and ensure payments are made within a reasonable amount of time. But when addressing delayed payments in the context of supply chain struggles, it is crucial to recognize these problems as pervasive and persistent. They won’t be easily solved, but they can be mitigated with open communication and a commitment to transparent payment practices.

Commercial credit rating

If you’re familiar with the nature of commercial credit, you know supply chain disruptions can damage your commercial credit score. Of the four main factors involved in calculating a company’s credit rating — length of activities, late payments, number of references, and derogatory items — at least two are negatively affected by disruptions in the supply chain. The longer and more severe the disruption, the more commercial credit scores suffer.

Supply chain troubles leave no one unscathed. Suppliers, buyers, consumers, and markets are all negatively affected when supply chains break down. With the situation unlikely to calm down anytime soon, transaction transparency helps all parties mitigate the damage, find mutually beneficial solutions, and preserve the trust necessary for a healthy professional partnership.

Need help managing your commercial credit risk? MSCCM financial experts can assist you. Contact us today.