Late payments continue to be a significant challenge for small business owners and freelancers across the UK, with 49% of all invoices being paid late in the 12 months leading up to June 2024. This marks an increase from 43% in the previous year and is worse than the 46% recorded in 2020.
The issue is particularly severe in certain parts of London, where an alarming 73% of invoices were paid late. In contrast, Ipswich remains the least affected area, with only 22% of invoices sent by small businesses within the IP postcode being paid late.
Northern Ireland is particularly notable for its high rate of late payments, with 62% of invoices issued in the past year being paid after the due date. The ongoing problem has frustrated many SMEs, with a quarter of businesses expressing concerns about their future due to delayed payments.
Despite the growing frustration, 55% of SMEs believe that the Small Business Commissioner lacks sufficient powers to address the issue. However, fewer than half (46%) think that the prompt payment code (PPC) should be made mandatory for all businesses. One in five SMEs feel it should only be compulsory for large companies.
These findings underscore the urgent need for more effective measures to combat the late payment crisis affecting UK small businesses and freelancers.
Talk to us about your small business.