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.

Basic strategic advice: why your business needs an evolving strategy

By Anna Stubbs • June 2, 2026
“Q: Why do I need an evolving strategy for my small business?” You’re a business owner or CEO. And that means it’s your responsibility to take care of the business, invest in the right places and make the company a success story. However, to do this, you need an agreed business strategy that lays out your goals, your mission and your plan for taking the company to the next level. So, why does this need to be an evolving strategy? “A: Your business strategy is not a static document – it’s a plan and mission that should be fluid, agile and able to react to change.” We’re trading in uncertain times at present. Each day presents a new challenge for small businesses, and having a plan that can react to change is a major competitive advantage.

Cash flow and cost control

By Anna Stubbs • June 2, 2026
More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode. Revenue, profit and your bottom line all deserve your attention. But keeping everything running is the baseline. Regular cashflow forecasts help you keep that in focus. Here’s why: Cost control - If you can't reach your targets for income, reining in your costs may give you a little extra head room to manage cashflow while you plan your next move. Visibility on outgoings - Cost control can be a challenge when it’s hard to pinpoint hidden costs or where established ways of doing things cost more money than they should. You may also have been coping with unexpected expenses, as you’ve adapted your business for unplanned circumstances or increased costs. Improving business practice - It's more than only keeping an eye on outgoings (though that's important). It's about looking at each aspect of your business and business systems (or the gaps where there should be business systems) to see if poor practice is driving costs up unnecessarily. It can be useful to break it down - You can look at cost centres such as office supplies or freight. Or you can look at what those costs do for your business. It can help to analyse costs in terms of cost of sale and overheads.

Basics strategic advice: how do accountants support your financial performance?

By Anna Stubbs • June 2, 2026
“Q: How does an accountant support my financial performance?” We’re all used to the idea of a business needing an accountant. But have you ever stopped to think what a good accountant and business adviser can actually bring to your company? Advances in technology, software and AI are changing our expectations of what a basic accountant/business owner relationship can offer. So, it’s important to reassess your expectations and to find out where we can add real, additional value. “A: Your accountant is now a full-fledged business adviser, ready to help you review, manage and transform your finances and strategy.”  In previous decades, your accountant dealt primarily with historical data – the transactions and cash inflows/outflows that had happened in the past. Today, with access to so much smart forecasting, data analysis and forward-looking scenario-planning, we can tell you far more about the future of your business.