The major issue of late payment: how to improve payment times

Anna Stubbs • March 18, 2026

“Many small businesses are now operating under pressures comparable to those experienced during the Covid pandemic, but this time without an emergency support framework in place.”

“SMEs are facing late payments, rising energy costs, increasing crime, a complex tax system and barriers to growth that are compounding rather than easing.”


Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee.


A recent report from the UK Government’s Business and Trade Committee has found that UK small businesses are facing increasingly hostile trading conditions, in no small part due to the endemic problem of late payment.


The key problem of late payment

With liquid cash in short supply, many customers are delaying payment of supplier invoices until the very last moment. Not only does this have a negative impact on your cashflow position. It also increases your aged debt and puts real pressure on your ability to cover operational costs.


The recent Small Business Strategy report found that:

  • Evidence from Sage indicates that UK small businesses were owed £112 billion in unpaid invoices by the end of 2024
  • Nearly half of all invoices are paid late, even with payment terms of 60 to 90 days now routine in sectors such as construction
  • Around 38 small suppliers are estimated to close each day as a result of late payment practices.


Helping you improve your payment times and cashflow

If you’re worried about slow payments from your customers and the cumulative impact this is having on your cash position, book some time for a chat with our team.


We can review your accounts receivable processes and your aged debt to suggest proactive ways of speeding up those payments, including:


  • Offering multiple payment methods like credit cards and digital wallets
  • Sending invoices immediately after delivery of goods or services
  • Automating your follow-up reminders through your accounts software
  • Implementing early payment discounts to provide a clear financial incentive
  • Running credit checks on new clients to identify potential payment risks.

Keeping your tax and expenses in check when you are self-employed

By Anna Stubbs • September 4, 2026
Contracting or freelancing requires you to wear a lot of hats. Relationship-building, keeping track of your time, marketing your skills and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits.

Does the electricity cut help your small business?

By Anna Stubbs • September 4, 2026
The UK’s new Prime Minister Andy Burnham has wasted no time making new tax policies since taking office, having announced a tax cut to remove VAT from domestic electricity bills from 1 October. While this measure is primarily targeted at households, some smaller businesses will, importantly, also be eligible for relief.

Budgeting for success: the importance of good financial management

By Anna Stubbs • September 4, 2026
When you’re operating and managing a small business, you have a finite pot of cash to work with. Because of this, it’s incredibly important to manage your cash well and to have clear budgets and spending limits for every area of your business operations.  Let’s take a look at why budgeting is such a vital part of your financial management, and what you can do to keep your company on budget and in a positive cashflow position.