Payment delays – UK and Ireland rank amongst the top five European economies


A lauded UK top five finish in Eurovision, a not so welcome European top five UK ranking for payment delays.

Credit Connect has recently published an article detailing worldwide late payment trends.  The article highlights amongst other things that the UK and Ireland rank amongst the top five European economies for payment delays:

UK and Ireland among top five worst in Europe for payment delays – Credit Connect (credit-connect.co.uk)

Data reveals that despite having on average lengthier payment terms in the UK, it takes companies in the UK an average of 55 days to collect payment in comparison with an average of 45 days in Europe.

This is clearly a concerning trend for UK businesses, albeit, behind the headlines, the research also suggests that collection times in the UK have, with a few exceptions, now reverted to pre-pandemic levels and, in some cases, have marginally improved.  However, it appears inevitable that the position will worsen, given the inflationary and cost of living pressures currently affecting the economy.

With energy and material costs rising rapidly coupled with the squeeze on household incomes, it is more important than ever that businesses carefully monitor cashflow and profitability and take early action in relation to late payment by customers.  Early, targeted action, often maximises the prospects of recovering sums due thereby potentially reducing the negative impact bad debt can have upon the prospects for your business.

If you are affected by any of the issues detailed above, please do not hesitate to contact John Bradshaw or Sarah Mower of the Insolvency & Business Recovery Team at Barker Gotelee for an informal confidential chat.

John Bradshaw is a partner and specialist in Insolvency & Business Recovery at Barker Gotelee Solicitors.

Suffolk Insolvency Solicitors – for more information on our range of legal services, please call the team on 01473 611211 or email bg@barkergotelee.co.uk