UK firms hit record levels of late invoice payments, leaving SMEs 109bn out of pocket

"More than £100 billion in overdue invoices were logged by UK companies in the first nine months of 2025, as late payment practices hit record levels and small businesses bear the brunt. Analysis of government filings by the campaign group Good Business Pays shows that a record number of large firms admitted paying more than half their invoices late this year."

"In total, £109.2 billion in invoices were paid late between January and September, according to the study of 5,000 company reports under the UK's Payment Practices and Performance Regulations. The government estimates late payments affect 1.5 million SMEs, holding back investment and job creation. High-profile offenders Among the companies named were BMW, Baxters and Hyperoptic: * Baxters reportedly failed to pay 90% of invoices within agreed terms."

UK companies recorded £109.2 billion in overdue invoices between January and September 2025, with suppliers waiting on average more than 50 days for payment. Good Business Pays analysed 5,000 Payment Practices and Performance Regulations reports and found a record number of large firms admitting they paid more than half their invoices late. A total of 127 firms reported average payment times exceeding 80 days, up from 85 earlier in the year. The government estimates late payments affect 1.5 million SMEs and restrict investment and job creation. Compliance with mandatory filings remains patchy, at an estimated 50-60%.

Read at Business Matters