Statistics on UK late and unpaid invoices

The source of this article on non payment and late payment statistics is : https://www.disputesregister.org/advice/late-and-unpaid-invoices-uk-statistics

Main findings

• 20% insolvencies due to late payments 
• 30% of invoices not settled within agreed terms
• Big companies are 30% worse payers than small companies
• Manufacturing companies worse payers than service companies
• Legal and Accounting companies are the worse
• 90% of small company managers unable to credit score clients

Company size

The best 20 companies surveyed have about 35% of the revenue of the worse 20. The chart below shows  companies with sales between £10m and £100m, are worse payers the bigger the company (30 days to 39 days). 

Payment times by Industry

Some industry sectors are worse than others. Generally manufacturing is worse than service though there are many exceptions.

SIC category (Average days to pay)

6.9 - Legal and accounting activities (74)

5.6 - Food and beverage service activities (69)

1.8 - Printing and reproduction of recorded media (58.7)

1.7 - Manufacture of paper and paper products (58.1)

3.8 - Waste collection, treatment and disposal activities; materials recovery (56.9)

2.4 - Manufacture of basic metals (53.6)

2.9 - Manufacture of motor vehicles, trailers and semi-trailers (52.5)

1.1 - Manufacture of beverages (50.4)

2.3 - Manufacture of other non-metallic mineral products (50.1)

2.5 - Manufacture of fabricated metal products, except machinery and equipment (49.4)

Insolvencies

20% of insolvencies were due to companies receiving late payments from their clients (source R3). This causes a domino effect: insolvent companies cause other companies to go insolvent.