This analysis by IEER concerns the experience of Hungarian businesses with late payment and circular debt. The results are based on IEER's July 2018 Quarterly Business Climate Survey, which involved 400 domestic respondents. Based on the answers, 55% of businesses had at least one partner that paid late in the first half of 2018, and 8% of respondents made late payments themselves to their suppliers in the examined period. The issue of late payment most often hits medium-sized companies (with 100-249 employees) and the construction industry. The results show that businesses now have fewer late-paying partners on average than in the previous few years, and a smaller proportion of their income arrives late. However, the number of companies that failed to pay in time to their suppliers at least once due to the late payment of their customers slightly rose since January 2018.