As reported by London Loves Business, late payment remains a major issue for UK small and medium-sized enterprises (SMEs), with new research revealing that three in four businesses are currently owed money by customers failing to pay on time

The findings come from a recent survey conducted by Purbeck Insurance Services, the UK’s only provider of personal guarantee insurance for business owners. The survey paints a troubling picture of how widespread and damaging late payments continue to be for small firms across the country.

According to the data, SMEs with 10 or more employees are each owed between £18,000 and £22,000 on average in outstanding invoices. The problem is particularly acute among larger SMEs, with those employing 100–249 staff reporting the highest levels of late payment debt.

While the UK Government’s consultation on reforming late payment practices is still underway, 60% of SMEs surveyed said late payment is actively harming their business – affecting cash flow, operations and growth potential.

The survey also uncovered significant regional variation. Businesses in Greater London, the West Midlands, and Scotland reported the highest average amounts owed – each exceeding £21,000 in unpaid invoices. In contrast, companies in Wales (£10,813), the South West (£12,182), and Yorkshire and Humber (£12,540) face lower levels of late payment debt, though the issue remains widespread.

The findings highlight the systemic nature of the late payment crisis and the urgent need for stronger regulation and support for SMEs grappling with delayed cash flow.