The UK’s Late Payment Pressure Map: Where Businesses Wait Longest to Get Paid
Late payments remain one of the biggest cash flow challenges facing UK businesses, but new Government data shows that suppliers in some parts of the country are waiting considerably longer than others to get paid.
New analysis by British Business Funding of the Department for Business and Trade’s latest Large Businesses’ Payment Practices and Performance statistics found that the West Midlands has the highest late payment pressure of any UK region.
Large businesses in the West Midlands took an average of 38 days to pay their suppliers, compared with just 27 days in London.
The region also recorded the highest proportion of invoices paid late, at 19%, while 18% of total invoice value was paid later than agreed.
The UK regions where businesses wait longest to get paid
| Region | Average time to pay | Invoices paid late | Value of invoices paid late |
|---|---|---|---|
| West Midlands | 38 days | 19% | 18% |
| East Midlands | 38 days | 16% | 15% |
| Yorkshire & Humber | 37 days | 16% | 15% |
| North East | 35 days | 12% | 16% |
| North West | 34 days | 14% | 16% |
| East of England | 33 days | 15% | 14% |
| Northern Ireland | 33 days | 14% | 11% |
| Scotland | 32 days | 15% | 14% |
| South East | 32 days | 15% | 13% |
| South West | 31 days | 16% | 15% |
| Wales | 30 days | 18% | 13% |
| London | 27 days | 14% | 13% |
The figures are based on reports that qualifying large businesses are legally required to submit to Government about how quickly they pay suppliers.
The results suggest there is a significant geographical difference in payment behaviour.
A supplier working with a large business in the West Midlands waits, on average, around 11 days longer for payment than one working with a large business in London.
For SMEs operating with limited working capital, those additional days can make a substantial difference.
Wages, VAT, rent, suppliers and other operating expenses still have to be paid while a business is waiting for customer invoices to clear.
Manufacturers take the longest to pay suppliers
The regional picture is only part of the story.
The same Government data shows that payment times also vary considerably between industries.
Manufacturing businesses had the longest average payment time of any major sector, taking 45 days to pay suppliers.
Some 21% of manufacturing invoices were paid late, accounting for 21% of total invoice value.
| Industry | Average time to pay | Invoices paid late | Invoice value paid late |
|---|---|---|---|
| Manufacturing | 45 days | 21% | 21% |
| Water, waste & remediation | 37 days | 18.5% | 22% |
| Wholesale & retail | 37 days | 15% | 11% |
| Transport & storage | 35 days | 12% | 14% |
| Accommodation & food | 35 days | 9% | 10% |
| Construction | 33 days | 14% | 13% |
| Professional, scientific & technical | 31 days | 16% | 16% |
| Finance & insurance | 21 days | 13% | 12% |
Source: Department for Business and Trade
The difference between sectors can have important consequences for smaller businesses supplying larger organisations.
A manufacturing supplier waiting 45 days to receive payment may need to cover more than six weeks of wages, materials and other overheads before the cash from an invoice reaches its bank account.
Businesses with several customers operating on similar payment cycles can quickly build up significant amounts of money in unpaid invoices.
Late payment costs the UK economy billions
The Government estimates that late payments affect more than 1.5 million UK businesses and cost the economy almost £11 billion each year.
It has also linked payment delays to the closure of around 38 businesses every day.
The scale of the problem has resulted in proposals for significant changes to UK payment rules.
Under Government plans, businesses could face a maximum payment term of 60 days, alongside stronger enforcement of statutory interest on overdue invoices, financial penalties for persistent late payment and increased powers for the Small Business Commissioner.
Source: UK Government consultation on tackling poor payment practices
Smaller businesses overwhelmingly support tougher payment rules
There is also a clear divide between businesses of different sizes over proposed payment reforms.
Government consultation data published in 2026 found that 73% of micro businesses supported introducing a maximum 60-day payment term.
Support remained high among small businesses at 70% and medium-sized businesses at 56%.
Among large businesses, however, only 44% supported the proposal, while 47% disagreed.
| Business size | Support for 60-day maximum payment terms |
|---|---|
| Micro businesses | 73% |
| Small businesses | 70% |
| Medium businesses | 56% |
| Large businesses | 44% |
Source: Department for Business and Trade consultation analysis
The figures highlight why payment terms remain such an important issue for SMEs.
Larger organisations often have greater cash reserves and access to finance, while smaller suppliers may be considerably more exposed when invoices are delayed.
When profitable businesses run into cash flow problems
Late payment does not necessarily mean that a business is unprofitable.
A company can have a healthy order book and profitable customers while still experiencing a shortage of available cash if invoices take 30, 45 or 60 days to be paid.
This difference between profitability and cash flow is particularly important for growing businesses.
Taking on larger contracts can require businesses to purchase more stock, hire employees or increase production before receiving payment from the customer.
Without sufficient working capital, growth itself can therefore create financial pressure.
Funding options such as invoice finance can allow businesses to release cash tied up in unpaid invoices, while revolving credit facilities and working capital loans can provide additional flexibility when business expenses fall due before customers pay.
The appropriate solution will depend on the underlying strength of the business and the reason for the cash flow gap.
John Carter, Managing Director of British Business Funding, said:
“Late payment can create an unusual situation where a business has plenty of work but not enough immediately available cash.
“A company might have tens or even hundreds of thousands of pounds sitting in unpaid invoices while wages, suppliers and tax bills still need to be paid.
“The regional and sector differences in these figures are particularly interesting because they show that businesses in some parts of the economy may routinely have to finance significantly longer payment cycles.
“For growing SMEs, planning working capital around those payment terms is extremely important. Funding can help bridge the timing gap in the right circumstances, but businesses should understand exactly when customers are likely to pay before taking on additional costs.”
Methodology
British Business Funding analysed the Department for Business and Trade’s Large Businesses’ Payment Practices and Performance Statistics 2025, published in July 2026.
Three measures were considered when assessing regional late payment pressure:
- Average number of days taken to pay suppliers
- Percentage of invoices paid later than agreed
- Percentage of total invoice value paid later than agreed
The figures relate to large businesses required to report their payment practices under UK legislation and therefore measure how large organisations pay their suppliers rather than the payment behaviour of all businesses within each region.
Regional figures should consequently be interpreted as an indication of supplier exposure to slow payment rather than a measure of how quickly SMEs themselves pay invoices.