77% of SME’s are owed money by late paying customers
25th June 2025.
This week Emma Jones CBE took over as the new Small Business Commissioner, with the remit to tackle late payments.
She stated her commitment to work at pace to get money moving through the economy and into the hands of small firms.
She said she would be focused on three priorities
1. Technology adoption
Making life easier for small businesses by leveraging technology to speed up payments and direct businesses to relevant finance and support.
2. Public and private partnership
Results will be delivered in partnership with government at all levels, and with industry, with the aim to free up precious time so businesses can focus on what they do best and go for growth.
3. Cultural change
To celebrate good business through the Fair Payment Code and continue to challenge companies that pay late and engage in unfair practices.
To welcome her into the new job, a survey of SME business owners and managers has found that 77% of those surveyed reported being owed money by their late paying customers.
On average, SMEs with 10 or more employees across the UK are each currently owed £18k-£22K in unpaid invoices according to the survey by Purbeck Insurance Services (a provider of personal guarantee insurance to business owners). The findings of the survey show show that late payment remains a persistent, systemic problem affecting the vast majority of the UK’s small companies.
Purbeck’s survey suggests SMEs with 100-249 employees are typically owed £22,102.
Not far behind though, companies with 10-49 employees have on average late payments amounting to £20,973. Given the differences in sizes, it would point to small businesses suffering serious issues.
Micro businesses of 1-9 employees, for whom cash flow is even tighter, still face on average £8,441 in unpaid invoices.
60% of the businesses surveyed said late payment was materially impacting their business.
Most notably, the companies with 100-249 employees claimed to be affected the most with 74% saying late payment is having a significant or slight effect on their business.
The survey also looked at the regional differences. Businesesin the West Midlands, Scotland and Greater London were all owed over £21,000 while firms in Wales (£10,813), the South West (£12182), Yorkshire and Humber (£12540) have much lower volumes of late payments.
Interestingly, the survey also found that male business leaders reported higher levels of late payments than their female counterparts with the men typically have 17,997 owing to them compared to the women who repoarted an of average £15,592.
Todd Davison, MD of Purbeck Insurance Services said, “It is little wonder that ‘working capital’ is the main reason SMEs are taking personal guarantee backed loans currently, according to our data. They are effectively bank rolling their customers. It’s not fair and it’s not right. The outcome of the Government’s consultation could not come soon enough. This should be a top priority for Emma Jones as she begins work as Small Business Commissioner. In the meantime it remains vital for SMEs to keep on top of invoices, chasing payments as soon as they are 2 or 3 days overdue and consider exercising their legal rights by charging interest on overdue invoices and charging late payment fees. Ultimately, every business has seen their costs rise. Using a supplier to buoy up your own finances is both unethical and hugely damaging to our SME community.”
We at the Credit Protection Association would echo those sentiments.
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA’s collection department for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!