UK Small Businesses Lose £7.4 Billion to Unpaid Invoices

Surprising Truth About Late Billed Bills in the UK

Capital on Tap’s newest survey spills the beans: 99% of small UK businesses have been forced to chase an overdue invoice at least once. In short, that little “oops” on your balance sheet is more common than you think.

How Much Strain Is Actually on the Banks?

Globally, the average UK shopkeeper is holding onto a whopping £7.4 billion in unpaid invoices. That’s a little more than a dozen large supermarkets’ annual turnover. And the burden isn’t spread evenly—some sectors feel the squeeze harder than others.

Retail: £1,532 in lag‑behind payments
Electrical Services: £1,501
Industrial Equipment: £1,451
Property Management & Development: £1,032 (lowest, but still a dent)

How Many Times Do We ‘Ping’ Clients Each Month?

A typical small biz contact‑follows an invoice eight times a month—that’s roughly twice a week. Some industries are more like a hamster wheel, others are a picky cat.

Education: 11 chases per month
Home Furnishing: 10
Healthcare, Electrical, Consulting: 9
Restaurants & Food: 4 (the least pursuit)

Who’s the Worst Delayer?

Finance providers are leading the delayed‑payment parade, with 51% of their invoices arriving later than promised. Next up: building & development (again 51%) and equipment leasing (50%).

Who Finishes the Ledger On Time?

In the best pit‑stop spots, publishing firms and food retailers shine, being the top two pay‑achievers—though even they still see 41% of invoices late.

Capital on Tap’s Quick‑Fix Guide to Relieving the Pain

Stage 1 – The Email: “Hi! Noticed your invoice is overdue. Is everything still on track?” It’s a courteous nudge and often enough.

Stage 2 – The Phone: If email falls on deaf ears, a quick call pop‑ups. People tend to pay up when they hear your voice.

Capital on Tap’s Managing Director nods in agreement: “Late payments can feel like a chore, but a friendly reminder, then a call, usually works.”

So next time you find your cash flow on a tightrope, remember: a polite email, followed by a phone call, might just be the safety net you need.

When a Payment Issue Persists, Here’s What to Do

Sometimes, despite your best efforts, a customer still won’t settle what’s owed. Don’t let that stress you out—just follow these easy, no‑frills steps.

1. Gently (and sometimes firmly) Escalate

Give a friendly reminder. Just one quick line can jog their memory.
If that doesn’t work, issue a more serious notice. Let them know you might halt supplies if they keep missing payments.
If your contract has a late‑fee or interest clause, explain how this will be added to the next invoice.

2. Get a Second Opinion

When the ball is still rolling, pull in an outside voice.

Local business advice centre – often free and very handy.
Trade union – they know the best ways to protect your interests.
Accountant or solicitor – the pros who can give you legal and financial guidance.

3. Pay Your Own Bills Punctually

Owning a business is a two‑way street. Make sure you’re clearing invoices on time so your partners trust you.

Got Cash Flow Issues?

Late payments can drain your reserves. Here’s a quick fix:

Apply for a business credit card. It’s a handy lifeline while you wait for your clients to pay.
Use the card wisely – pay it off within the statement period to avoid interest.
Keep the card on hand for those unavoidable “tide‑over” moments.