New Data Reveals the UK’s Worst-Paying Business Sectors – How SMEs Can Fight Back
Published by The Credit Protection Association – Prompting Punctual Payments
As the UK celebrated Micro, Small and Medium-sized Enterprises Day (MSME Day) on 27 June, it’s the perfect moment to recognise not just the contribution of small businesses—but the ongoing battle they face against late payments.
New research from Novuna Business Cash Flow showed that the late payment epidemic is costing small businesses dearly:
40% of B2B invoices are overdue for payment
ÂŁ22,000 lost per year by the average small business
50,000 SMEs shutting down annually due to cash flow pressures
64% of businesses now expect a heightened risk of insolvency in 2025
Despite UK legislation setting standard 30-day payment term requirements (unless otherwise agreed), actual payment times are now averaging 52 days across Western Europe. That’s a jump from 41 days just last year. It’s clear: businesses are being forced to wait longer and longer for money they’re rightly owed.
The Late Payment League Table: Who’s the Worst?
Sector-by-sector data paints a stark picture. Manufacturing consistently ranks as the slowest-paying sector, closely followed by transport, administrative services, and wholesale.
The worst payers
- Manufacturing – Averaging over 80- days to pay their creditors
- Transportation and storage – 62 days
- Administration and support services – 57 days
- Information and communication – 48 days
- Wholesale and retail trade – 47 days
- Waste supply & management – 45 days
- Construction – 44 days
- Professional, scientific and technical activities – 39 days
- Human health and social work activities – 35 days
- Education – 30 days
The Credit Protection Association, is not surprised by this data. In fact, we’ve seen these trends play out across our member base. But the real question is:
What are you doing to protect your business?
Why Late Payments Happen – and What to Watch For
It’s not always a cash-flow crisis that causes late payment. Sometimes, it’s more frustrating:
“No response” – A full 20% of late payers simply ignore your follow-ups.
“Still in approval” – 15% of delays are blamed on internal sign-off processes.
“Can we have another copy?” – 12% conveniently “misplace” your invoice.
“Just slow” – 7% are chronic offenders.
These are not unavoidable. And they’re exactly the sort of delays, that CPA’s Overdue Account Recovery Service can help you overcome.
How CPA Members Stay Ahead
At CPA, we equip our members with the tools to prevent late payments—and recover overdue ones quickly, ethically, and without damaging client relationships.
Here’s how we help:
Creditcare Reports – Know who you’re dealing with before you offer terms.
Real-time Monitoring – Get alerts if your customers show signs of risk.
Overdue Account Recovery – We chase, they pay you. Over 80% of accounts are resolved without escalating.
Fixed Annual Subscription – All the above, included. No nasty surprises, no extra commission.
Escalated Collection Services – For debts that need more muscle, we’ve got your back on a no win, no fee basis.
Practical Steps You Can Take – Today
You don’t need to wait for invoices to go overdue before you act. Here are five proven steps:
Check PO requirements upfront – avoid rejections and delays.
Send invoices immediately – every day you wait is a day you delay payment.
Log hours and pricing accurately – disputes kill payment timelines.
Follow up firmly but fairly – don’t let your invoice fall to the bottom of the pile.
Know when to escalate – CPA can help when reminders don’t work.
When Credit Control Becomes a Burden…
Many SMEs struggle with chasing payments—whether due to time, capacity, or a desire to protect client relationships. That’s why CPA members use our services to outsource the pressure without outsourcing the professionalism.
We stay polite.
We stay persistent.
You stay in control.
Unpaid invoices aren’t just a balance sheet issue—they drain your time, energy, and peace of mind. So why not let us handle it?
Why This Matters on MSME Day
On MSME Day, we celebrate the agility, passion, and innovation of small businesses. But it’s also a time to confront what holds them back. Late payments are a drag on growth. A strain on mental health. And, increasingly, a threat to survival.
Let’s change that. With smart systems and support from CPA, you can reduce your risk, reclaim your cashflow—and sleep a little better at night.
Ready to protect your business from late payers?
Call Peter Uwins on 020 8846 0000 or email nsm@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments since 1914.