£8.75 Billion Paid Late — Why the Late Payment Crisis Is Still Systemic

A few weeks ago we explored why late payment persists in the UK.

Why Late Payment Persists

The answer was uncomfortable but clear: for many large organisations, paying late is not accidental. It is structural.

Now we have fresh evidence of the scale.

New analysis from Good Business Pays shows that £8.75 billion of supplier invoices were paid late by large UK companies in just six months to December 2025.

This is not a marginal issue. It is a systemic one.

The Numbers Tell a Stark Story

Of that £8.75 billion:

  • Over £5 billion related to invoices where there was no dispute.
  • 29 companies report taking 100 days or more on average to pay.
  • 83 companies take more than 80 days.
  • 122 companies pay at least 70% of their invoices late.

These are not administrative oversights. These are patterns.

When undisputed invoices are paid late at scale, it reflects policy, not accident.

When “Payment Terms” Become Working Capital Strategy

Some well-known businesses appear repeatedly on late payer watchlists.

Travis Perkins Trading Company recently extended supplier payment terms from 30 to 60 days and paid over £791 million in undisputed invoices late.
Baxi Heating reportedly paid 96% of invoices late.
Red Bull paid 85% late.
Vestas Celtic Wind Technology averages 135 days to settle invoices.

The message is clear: for some organisations, stretching supplier payment has become embedded in financial strategy.

But when large firms use suppliers as a source of working capital, smaller businesses absorb the strain.

The Human Cost Behind the Figures

The Small Business Commissioner reports that around 14,000 UK businesses close each year due to late payment.

That is 38 businesses every day.

Late payment is not an irritation.
It is a solvency risk.

And as we highlighted previously, more businesses fail through poor cashflow than anything else — even those that appear profitable on paper.

Profit does not pay wages.
Cash does.

Transparency Is Not the Same as Accountability

There is some modest progress. The number of companies meeting “late and slow payer” definitions has fallen.

But transparency alone does not change behaviour.

Until persistent slow payers face meaningful consequences, many suppliers will continue to carry disproportionate financial risk.

Late payment remains normalised in parts of UK corporate culture.

Why This Matters More in 2026

High interest rates.
Tighter margins.
Elevated insolvencies.

In this environment, suppliers cannot afford to act as unpaid lenders.

If your margins are 5%, writing off £10,000 requires £200,000 in additional turnover just to stand still.

The true cost of inaction is rarely calculated — but it is always paid.

What Businesses Can Do

You cannot control how quickly a large customer chooses to pay.

You can control your credit management process.

You can:

  • Set clear credit limits.
  • Monitor risk indicators.
  • Escalate promptly when invoices fall overdue.
  • Act before delays become defaults.

Delay is expensive. “Later” is often the most costly decision in credit control.

Early action consistently produces better outcomes.

Protecting Cashflow Without Damaging Relationships

At CPA, we have been helping UK businesses strengthen cashflow since 1914.

Our approach is simple:

  • Ethical
  • Economical
  • Efficient
  • Effective

We focus on causing debtors to pay promptly while maintaining goodwill. Payments are made directly to you, not to us.

Because protecting revenue should not mean damaging relationships.

The Reality

£8.75 billion paid late in six months is not a blip.

It is a warning.

If you supply on credit, strong credit control is no longer optional. It is a resilience strategy.

  • Strengthen your process.
  • Act early.
  • Protect your cashflow.

Start Protecting Your Cashflow Today

If late payments are placing pressure on your business, talk to CPA.

Call 020 8846 0000 (business hours)
or email nsm@cpa.co.uk

The Credit Protection Association
Improving cash flow. Protecting relationships.

James Salmon, Operations Director, 26th February 2026