{"id":3241,"date":"2017-12-07T07:00:00","date_gmt":"2017-12-07T07:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=3241"},"modified":"2026-01-30T10:48:32","modified_gmt":"2026-01-30T10:48:32","slug":"late-payments-get-paid-faster","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/late-payments-get-paid-faster\/","title":{"rendered":"Late payments: Why your invoices are delayed and how to get paid faster"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tLate payments: Why your invoices are delayed and how to get paid faster\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2017-12-07T07:00:00+00:00\">7 December, 2017<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Late payments: Why your invoices are delayed and how to get paid faster\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/late-payments-get-paid-faster\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/alanlaing\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/10\/Alan-Laing-2.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Alan Laing<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Chasing late payments is a big issue for small and medium-sized businesses. If you\u2019re not receiving payments on time, it could lead to a drop in profits, a struggle with your cash flow and worse.<\/p>\n\n\n\n<p>We\u2019ve conducted research into late payments, surveying more than 3,000 small and medium enterprises (SMEs) across 11 countries, to uncover the true impact of this issue and understand the main barriers to chasing payments.<\/p>\n\n\n\n<p>The results paint a vivid picture of the impact of late payments on businesses:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the UK, 17% of all payments to SMEs are late.<\/li>\n\n\n\n<li>UK SMEs spend 15 days a year chasing late payments.<\/li>\n\n\n\n<li>More than 50% of UK SMEs currently experience or expect to experience a negative impact on company investment, their ability to pay their suppliers and their ability to pay staff an annual bonus.<\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The Domino Effect: The impact of late payments<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our global research report to uncover why customers pay late, the impact on businesses and what you can do to tackle the problem.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-2cce109c-a140-4a22-b1b3-529220aee136\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download the report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1288988716-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1288988716-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<p>It\u2019s unacceptable for 17% of all payments to SMEs to be paid late. Often, our entrepreneurs rely on low cash reserves to operate, meaning delays to income can have a substantial impact on their businesses.<\/p>\n\n\n\n<p>So why do late payments occur and what\u2019s stopping SMEs from chasing their customers for the money they need to keep their businesses running? Our survey uncovered some patterns:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-excuses-for-late-payments-nbsp\"><strong>Excuses for late payments &nbsp;<\/strong><\/h2>\n\n\n\n<p>In the UK, the most common excuses given by customers for payments being late are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The payment has already been made and the transaction is still pending (44%).<\/li>\n\n\n\n<li>No reason is given (35%).<\/li>\n\n\n\n<li>The customer only pays invoices at certain times of the year (22%).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-barriers-to-chasing-late-payments\"><strong>Barriers to chasing late payments<\/strong><\/h2>\n\n\n\n<p>Many SMEs find it difficult to raise the late payments issue and be firm with their customers because doing so could jeopardise future relationships. The biggest barriers to chasing late payment cited by UK SMEs are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>That the SME wants to protect the client relationship (40%).<\/li>\n\n\n\n<li>There\u2019s no dedicated resources to chase late payments (35%).<\/li>\n\n\n\n<li>There\u2019s not enough staff available to chase late payments (18%).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-conquer-late-payments\"><strong>How to conquer late payments<\/strong><\/h2>\n\n\n\n<p>So what can businesses do to reduce the impact of late payments?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-establish-strict-payment-terms-upfront\"><strong>Establish strict payment terms upfront<\/strong><\/h3>\n\n\n\n<p>Our survey shows the most common reason given for delaying payments is that the transaction is pending. There could be a significant improvement in timely payments if your business tightened up its&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/establish-payment-terms\/\" rel=\"noopener\">payment terms<\/a> from the start.<\/p>\n\n\n\n<p>Late payers are likely to be aware of the situation they cause and could be willing to pay you faster if it was a requirement for service. This helps to manage your customer\u2019s expectations and gives them time to schedule their payment in advance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-stop-asking-and-use-automation\"><strong>Stop asking and use automation<\/strong><\/h3>\n\n\n\n<p>When making a payment is easy, you don\u2019t have to ask twice. Automatic and digital payment methods, such as direct debit and <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/features\/invoicing\/\">e-invoicing<\/a>, can make payments as simple as one click for your customers and virtually eliminate the top obstacles to getting paid on time. Therefore:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No need for awkward conversations, strained client relationships or dedicated staff to give chase because the payment is reconciled into your account once the customer initiates the transaction.<\/li>\n\n\n\n<li>No need to track transactions to see if they\u2019ve cleared.<\/li>\n\n\n\n<li>E-invoice and direct debit amounts are automatically generated, processed and reconciled, eliminating human error and customer disputes.<\/li>\n<\/ul>\n\n\n\n<p>Digital payments that are automatically reconciled in your bank account can also give you more visibility and control of your cash flow. Since those types of payments are more reliable, you can better forecast what funds you\u2019ll have available throughout the year, giving you the agility to adjust as needed.<\/p>\n\n\n\n<p>We\u2019ll keep working on the battle against late payments to offer you the insights and advice you need to win the fight.<\/p>\n\n\n\n<p>What are your stories of dealing with late payments? Let us know in the comments below.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Chasing late payments is a big issue for small and medium-sized businesses. If you\u2019re not receiving payments on time, it could lead to a drop in profits, a struggle with your cash flow and worse. We\u2019ve conducted research into late payments, surveying more than 3,000 small and medium enterprises (SMEs) across 11 countries, to uncover [&hellip;]<\/p>\n","protected":false},"author":335,"featured_media":11626,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[24,25],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[103,109],"coauthors":[451],"class_list":["post-3241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","tag-make-receive-payments","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Alan Laing","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1146164056.jpg","imagine_tags":{"103":"Payroll software","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/3241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/335"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=3241"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/3241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11626"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=3241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=3241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=3241"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=3241"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=3241"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=3241"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=3241"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=3241"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=3241"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=3241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}