How CPA Helps Suppliers to Pubs & Restaurants Get Paid
Pubs and restaurants may look like cash-rich businesses — tills ringing with card and contactless payments every day. But for the companies that supply them, the story can be very different. Breweries, food wholesalers, cleaning firms, linen services, entertainment providers, and maintenance contractors often supply pubs and restaurants on credit. And too often, they’re left waiting far too long to be paid.
When margins are already tight, late payment can quickly turn into a serious cashflow issue. And with hospitality insolvencies at elevated levels in the UK, suppliers face not only delays but the risk of not being paid at all.
Unfortunately, in a sector where margins are already razor-thin, late payments can be crippling.
The Hidden Strain of Late Payments in Hospitality
- 💸Cash Flow Pressure: Suppliers wait weeks or months to be paid, while still covering their own costs.
- 🤝Relationship Risks: Chasing invoices can strain long-standing partnerships between venues and their suppliers.
- ⚠️Insolvency Threats: With hospitality insolvencies at elevated levels, suppliers face the real risk of non-payment altogether.
The Invoicing Issues Suppliers Face
Suppliers to pubs and restaurants frequently encounter:
- 🌀Unclear Trading Entities – Many pubs and restaurants are operated through limited companies, partnerships or even sole traders. If invoices are made out incorrectly, collecting payment later becomes much harder.
- 🧑🏻💼Owner/Management Changes – Venues often change hands, leaving suppliers chasing the wrong person or a dissolved business.
- 📵Lack of Contact Information – Without accurate addresses, phone numbers, and email contacts for decision-makers, chasing overdue accounts is slow and frustrating.
- ⚠️Extended or Broken Credit Terms – Trust-based agreements may be stretched far beyond the agreed due dates, harming cashflow.
What Suppliers Can Do to Protect Themselves
There are practical steps every supplier should take to reduce late-payment risks:
- 📃Use a Credit Application Form
Always have new customers complete a credit application before you open an account. This ensures you collect all the legal details and contact information up front. CPA provides sample credit applications for its members. - 💰Get deposits where possible
For large or one-off orders (e.g., event catering), secure a deposit up front to reduce your exposure. - ⚖️Invoice the Correct Legal Entity
Make sure your invoices are addressed to the actual company or individual responsible — not just the trading name of the pub or restaurant. - 🔍Know Who’s Behind the Business
Identify the directors, partners, or proprietors. If ownership changes, update your records immediately. - 💳Check their creditworthiness and Set Sensible Credit Limits
Base your credit terms on the customer’s financial health and history. Use credit reports to set sensible limits. Don’t extend more than you can afford to risk. CPA’s Creditcare reports can help you trade with confidence. - ✍🏻Agree Credit Terms in Writing
Avoid vague arrangements. State your terms clearly, including due dates. Say you will add statutory late payment compensation and interest where payment is late. Repeat your credit terms on the invoice. CPA members add “We are members of the Credit Protection Association” to their invoices. It is amazing how that short phrase alone can improve payment practices. - 📄Get ahead of potential delays
Make sure you have all the paperwork in order such as signed delivery notes. Confirm they are happy with the order and have received the invoice immediately. Don’t wait till the due date to find there was a problem. - 🚀Act Quickly on Overdues
The longer you wait to chase an overdue account, the harder it becomes to collect. This is where CPA can really help you. Freeing you to focus on your core business.
How CPA Supports Hospitality Suppliers
At the Credit Protection Association (CPA), we’ve been helping suppliers and service providers across the UK get paid since 1914. We make it easier to avoid problems and resolve them when they happen:
- 🕵🏻Credit Reports & Monitoring
Our Creditcare reports reveal a venue’s financial health and suggest realistic credit limits. Ongoing monitoring alerts you to changes, so you aren’t caught by surprise. - 📧Overdue Account Recovery Service
We chase overdue invoices ethically and effectively, with over 80% of debts resolved. Payments come direct to you — protecting your customer relationships. - ⚖️Escalated Debt Collection
For stubborn debts, we offer professional collections that escalate the process while keeping everything ethical, efficient, and economical. - 💷Debt Purchase (With-Recourse)
In some cases, we can buy your debt on a no-win, no-fee basis — providing you with fast relief from overdue accounts.
Why Choose CPA?
- 💯Over 100 years’ experience in credit management and collections
- 🔐Fixed annual membership tailored to your needs
- 💜A trusted, ethical partner that helps you get back in control of cashflow
💡Final Word
If you supply pubs, bars, or restaurants, don’t let late payments drain your business. By putting the right credit practices in place — and with CPA on your side — you can protect your cashflow, reduce risk, and get back to focusing on growth.
📞 Call 020 8846 0000 or email nsm@cpa.co.uk today to learn how we can support your business.
