Late Payment Statistics 2026 — The Data on Unpaid Invoices

• £23.4 billion in overdue payments

  UK small businesses are collectively owed approximately £23.4 billion in overdue invoices at any given time. The average small business (under 10 employees) has £8,500 outstanding. (FSB, 2023)

• 50% of invoices are paid late

  Half of all B2B invoices issued in the UK are paid after the agreed due date. 1 in 6 invoices is paid more than 30 days late. (Bacs/Pay.UK, 2023)

• Average 18 days late

  The average UK B2B invoice is paid 18 days after its due date. On Net 30 terms, this means effective payment terms are Net 48. (Bacs/Pay.UK, 2023)

• ~50,000 business closures per year

  The Federation of Small Businesses (FSB) estimates that approximately 50,000 UK businesses close each year as a direct result of late payment cash flow problems. (FSB, 2023)

• Statutory late payment rights are rarely used

  Despite the Late Payment of Commercial Debts Act 1998 entitling businesses to 8% + base rate interest on overdue B2B invoices, fewer than 10% of eligible businesses claim statutory interest. Most are unaware of the right or reluctant to claim for relationship reasons. (FSB, 2022)

For how to claim statutory interest: How to Charge Late Fees on Invoices.

• $84,000 average overdue balance

  Small businesses in the USA are owed an average of $84,000 in overdue invoices at any given time — equivalent to 2–3 months of typical small business revenue. (Xero, 2023)

• 29 days average late payment

  US small businesses wait an average of 29 days beyond the due date to receive payment. On Net 30 terms, this means invoices are effectively paid on Net 59. (QuickBooks, 2023)

• 82% of business failures caused by cash flow

  82% of US business failures are caused by poor cash flow management, with late payment from customers being the leading driver of cash flow shortfalls for service businesses. (US Bank / SCORE, 2022)

• Freelancers wait longest

  Independent contractors and freelancers have the longest average payment wait of any business type — average DSO of 50–60 days, despite most issuing Net 30 invoices. Lack of formal follow-up processes is cited as the primary cause. (Freelancers Union / Payoneer, 2023)

Sources: Atradius Payment Practices Barometer 2024; Intrum European Payment Report 2024. DSO figures are averages and vary by country.

Construction specifically suffers from contractual payment chains — main contractors delay subcontractor payments, who delay their suppliers. The 30-day prompt payment code in the UK has improved corporate compliance but smaller businesses still experience long delays. Use the DSO calculator to measure your own days sales outstanding vs. your industry benchmark. For construction-specific tracking, see: Invoice Tracking for Construction Businesses.

• Credit dependency increases

  Businesses waiting on overdue invoices are 3× more likely to use credit facilities (overdraft, credit card, business loan) to cover operating costs. The cost of this credit directly reduces profit margins. A business with £50,000 outstanding at an average of 30 days late, borrowing at 8% interest, pays approximately £3,300/year in unnecessary interest.

• Time cost of chasing

  The average small business owner spends 1.5 hours per week chasing late payments — approximately 78 hours per year, or nearly 2 full work weeks. At a typical billable rate of £75/hour, this represents £5,850 in lost productive time annually. Automated reminder sequences reduce this to approximately 15–20 minutes per week.

• Write-offs

  Approximately 7–10% of B2B invoices are ultimately written off as bad debts. For a business turning over £200,000/year, this represents £14,000–£20,000 in annual revenue written off. Systematic follow-up reduces write-off rates significantly — most bad debts age passively rather than being actively refused. Use the bad debt calculator to estimate your write-off risk by AR age bucket.

For the options when an invoice can't be recovered: What Happens If an Invoice Is Never Paid.

Across all the data sources, a consistent picture emerges of what separates businesses that get paid on time from those that don't:

For the complete prevention guide: How to Avoid Late Payments — 9 Strategies. For what to do when they happen anyway: How to Chase Overdue Invoices Step by Step.