Summary
Here you will find all the latest details on company payment trends across the UK (including Northern Ireland). This page is updated on a quarterly basis and provides details on how well companies pay invoices, the percentage of invoices that are paid late and the average Days Beyond Terms by sector. For real-time insight and alerts about company payment performance please consider subscribing to the Creditsafe platform.
Key findings for Q3 2020:
- 79% of all invoices paid late in May 2020.
- 33% increase against last year and an 18% increase from April 2020.
- Significant increases in Education, Business from Home and Real Estate sectors
79% of all invoices were paid late in May 2020, up 33% against last year and 18% against last month. This increase may reflect businesses delaying payment as cash flow is tightened in the face of the pandemic lockdown. Significantly fewer invoices were issued in April and May compared to last year, reflecting a general economic slowdown.
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Late payments by sector
% of late payments by sector (Q3 2020)
Although the UK average increased to see 79% of all invoices paid late this was noticeably higher in Businesses operating from home (92%) and Entertainment (91%) with Education and Real Estate businesses paying 89% of all invoices late in May representing a significant increase against last year.
Late payments by month
% of late payments by month
May 2020 saw a significant increase in the percentage of invoices paid late. At 79% it was the highest level we have seen in any month in the last three years and was 18% higher than April 2020 and 33% higher than May 2019. Undoubtedly many businesses faced with cash flow disruption due to the lockdown have reacted by delaying payments to their suppliers which will inevitably have a further knock-on effect.
Average number of days to pay
The average number of days taken to pay an invoice in Q3 2020
Want to explore the data for yourself?
Whether you want to understand the impact of late payments across a group of sectors or the likelihood of an individual company making late payments, you can find all of this data and more within the Creditsafe platform.
Methodology
This report is created by collecting and analysing trusted accounts receivable data from Creditsafe customers. Each month we collect and analyse millions of invoices raised by UK businesses in order to better understand how companies are paying their suppliers.
Creditsafe relies on contributors to share accounts receivable data as part of our Global trade Payment Data Programme. This insight, also used in our scores and presented in our credit reports, allows companies to make more informed trade credit decisions, reduce DSO, and limit exposure to bad debt.