Credit, Collections & Insolvency News
The Government has announced that the Small Business Protections Bill has been introduced to Parliament, aiming to end the scourge of late payments. The Small Business Protections Bill (formally known as the Commercial Payments Bill) delivers the toughest crackdown on late payments in a generation – putting a clear duty on large firms to pay…
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Small businesses have welcomed new legislation aimed at curbing late payments, calling it a historic moment. The King’s Speech introduced measures that empower the Small Business Commissioner to investigate and fine firms that consistently delay payments. The Late Payments Bill enforces a maximum payment term of 60 days and mandates interest for late payments at…
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UK businesses facing ‘critical financial distress’ have surged by 36.9% to 62,193 in Quarter1, according to BTG, while those in ‘significant distress’ rose 9.6% to 634,867 Rising labour costs, higher National Insurance contributions and sustained energy price pressures are hitting margins, particularly in hospitality and leisure. Industry experts warn that many “zombie” businesses are now…
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Late payment pressures intensified for businesses in the first quarter of 2026, with a growing number of companies carrying overdue invoices on their books, according to a new report from R3, the UK’s trade body for restructuring, turnaround and insolvency professionals. The report shows that the number of overdue invoices rose to 17.48 million, up…
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Bad debt and late payment are hammering Scottish SMEs’ cashflow and profitability, according to new data from SME funder Bibby Financial Services (BFS). BFS’s latest SME Confidence Tracker revealed that 39 per cent of Scottish SMEs, equating to around 139,000 businesses, experienced bad debt in the past 12 months. For those affected, the average amount…
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Research commissioned by Corpay has found that many organisations continue to rely on manual or partially manual spend processes, while finance leaders increasingly view automation and card-led payments as strategically important. The research of 300 CFOs, including those in retail, wholesale, manufacturing, and IT sectors, found that more than eight in ten CFOs (83%) agree…
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Increasing numbers of businesses are seeking protection against bad debt as they navigate tough trading conditions, according to SME funder, Bibby Financial Services (BFS). BFS’s latest SME Confidence Tracker reveals that the average amount SMEs are owed in unpaid invoices is £66,770 – a 10 per cent increase year-on-year – and 30 per cent have…
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The Government has announced new legislation which is designed to protect small businesses and aims to ensure that companies pay suppliers within 60 days, with late payments potentially triggering fines. Boards must also detail payment terms in their audit reports. Under the new plans, the Small Business Commissioner will be given sweeping new powers to…
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Late payments are forcing an estimated 14,000 businesses to close every year, equivalent to 38 closures every single day, as cash-strapped firms struggle to survive unpaid invoices, according to new analysis from Funding Circle. Construction is the sector most exposed, with over 2,100 firms estimated to have closed in 2024 due to delayed payments, driven by…
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Late payments are increasingly undermining the stability of UK SMEs, threatening payroll, job security and growth potential, according to new research by Bibby Financial Services (BFS), with the data showing that late payments from customers prevented more than two-fifths (42%) of SMEs from paying staff salaries on time in the last 12 months. Meanwhile, nearly…
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Small businesses across the UK are now operating under pressures comparable to and in some cases exceeding those experienced during the Covid-19 pandemic, according to a major new report published today by the House of Commons Business and Trade Committee. The Committee’s inquiry finds that while emergency support was rapidly mobilised during the pandemic, there…
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New global payment data analysis from Sidetrade is showing that late payments now account for 37% of the payment cycle. The data shows that businesses took an average of 51 days to get paid in 2025, composed of 32 days of contractual payment terms and 19 days of payment delay.The data indicates that short commercial…
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Latest Red Flag Alert research from Begbies Traynor has revealed a considerable 43.8% year-on-year increase in ‘critical’ financial distress in Q4 2025. Throughout 2025, UK businesses continued to grapple with a prolonged period of economic uncertainty, rising operating costs driven by inflation and higher wages, increased tax burdens, elevated interest rates, and weakened consumer demand. The persistence…
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