Late payments aren’t just an inconvenience—they’re a crisis affecting millions of businesses across the UK. If you’ve ever waited weeks (or even months) for an invoice to be paid, you’re far from alone.
The Numbers Don’t Lie: Millions of Businesses Are Affected
According to government data, there are around 5.5 million small businesses operating in the UK today. But here’s the shocking bit—depending on which study you read, anywhere from 3 to over 4 million of them are currently owed money from unpaid invoices.
That’s not a typo. Here’s what the research shows:
- 77% of SMEs (Purbeck Insurance Services, 2025) say they’re owed money by late-paying customers.
- 62% of small businesses (QuickBooks, 2025) report outstanding invoices, with an average of £21,400 owed.
- 27% (NatWest/Payit, 2023) are owed between £5,000 and £20,000.
- 73% (QuickBooks, 2023) say late payments are harming their business.
The numbers are staggering—and they’re not getting better.
It’s More Than Just Cash Flow
Unpaid invoices don’t just slow down your growth—they affect your mental health, productivity, and long-term financial planning. Research from the Department for Business & Trade found that UK SMEs spend an average of 56 million hours every year chasing late payments. That’s time you could be spending running your business—not following up with clients.
Many small businesses are stuck in a dangerous loop: waiting for money that may never arrive, while taking on debt or delaying investment just to keep the lights on.
So, What Can You Do?
If you’re one of the millions of UK businesses struggling with overdue payments, you don’t have to accept it as part of doing business.
- Set clear payment terms upfront and enforce them.
- Send reminders early—don’t wait until an invoice is weeks overdue.
- Consider using a debt collection agency when the situation calls for it.
Collect Compare lets you compare top-rated debt recovery agencies or get a tailored recommendation based on your case. Whether you're owed £500 or £50,000, we’ll help you find the right partner to recover what’s yours—without damaging your business relationships.
Don’t Let Unpaid Invoices Hold You Back
Join the thousands of UK businesses taking control of their overdue invoices. Compare debt recovery agencies in minutes or choose to be matched by our specialist team, completely free of charge.
