Research Article

THE CASH FLOW CONUNDRUM: EXPLOITING THE IMPACTS OF DELAYING ACCOUNTS PAYABLE ON SMES' FINANCIAL PERFORMANCE IN THE POST COVID-19 PANDEMIC

Salmanulfarisi Abdulrahaman1*, Abubakar Mukhtar Yakasai2
1 Department of Business Administration Yusuf Maitama Sule University, Kano Kano – Nigeria
2 Department of Business Administration, Northwest University, Kano
* Corresponding author: salmanulfarisiabdu338@gmail.com
Published: Dec, 2025
DOI: 10.67894/bbr.2025.2n16rfgz
Pages: 157-181
Views: 12
Downloads: 5

Abstract

The COVID-19 pandemic significantly disrupted global business operations, and Small and Medium Enterprises (SMEs) appeared among those that were seriously affected. Efforts to contain the virus, such as market closure and company shutdowns, led to drastic falls in revenue generation, thus weakening SMEs’ working positions. Similarly, institutional credit lenders faced liquidity constraints that limited their ability to provide funds during and after the pandemic. Thus, this study investigates the impact of delaying accounts payable on SMEs’ financial performance during the post-COVID-19 pandemic. The study used primary data and distributed 362 questionnaires on a four-point Likert scale to sample SMEs. To analyse data and test hypotheses, the study employs Pearson correlation and multiple regression analysis. Findings of the study reveal that delaying payment to suppliers does not statistically significantly influence SMEs’ financial performance in the post-COVID-19 period. Conversely, delaying payment to credit lenders, delaying Salary and Wages, deferring tax, and Payment in Arrears significantly and positively impact SMEs’ financial performance. In conclusion, the study recommends that deferral tactics can serve as a viable financial strategy for SMEs in the short run after a period of uncertainty and distress, such as pandemics, epidemics, depression, or other systemic disruptions. 

Keywords

Financial performance Deferred Tax Payment in Arrears COVID–19 Accounts Payable

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How to Cite

Abdulrahaman, S., & Yakasai, A. M. (2025). THE CASH FLOW CONUNDRUM: EXPLOITING THE IMPACTS OF DELAYING ACCOUNTS PAYABLE ON SMES' FINANCIAL PERFORMANCE IN THE POST COVID-19 PANDEMIC. Bayero Business Review, 9(2), 157-181. https://doi.org/10.67894/bbr.2025.2n16rfgz

S. Abdulrahaman, and A. M. Yakasai, "THE CASH FLOW CONUNDRUM: EXPLOITING THE IMPACTS OF DELAYING ACCOUNTS PAYABLE ON SMES' FINANCIAL PERFORMANCE IN THE POST COVID-19 PANDEMIC," Bayero Business Review, vol. 9, no. 2, pp. 157-181, December 2025. doi: 10.67894/bbr.2025.2n16rfgz

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