Almost all companies in the UK are struggling with late payments, according to Coface's 2025 United Kingdom Payment Survey. Compulsory liquidations are also on the rise, although insolvencies are declining overall and the economic outlook is positive.
Payment delays are becoming more frequent in the United Kingdom, according to a survey by Coface. Experts at the credit insurer and risk manager cite a cooling economy, as well as high and rising costs, as the reasons for this trend. In the 2025 United Kingdom Payment Survey, Coface surveyed payment behavior in the UK for the first time, interviewing nearly 700 companies in July 2025. According to the survey, the average delay stands at just under 32 days, and more than a quarter of companies have observed an increasing trend for late payments. Overall, 90 per cent of companies experienced delays last year – a remarkably high proportion by international standards, according to the survey. In France, the figure is 85 per cent, in Germany 81 per cent, and in Asia and Latin America around 50 per cent.
With an average payment period of approximately 51 days, the United Kingdom is comparable to France. In the Asia-Pacific region, longer payment periods of around 65 days are the norm. Latin America is only slightly higher than the UK, at 53 days. In Germany, on the other hand, a payment period of 32 days is standard.
Payment delays represent a trend
These developments indicate a broad trend, according to Coface’s experts, particularly as around half of large, micro, and small companies increased payment terms last year. This reportedly represents a major effort, particularly for small companies, as they operate with tightly calculated liquidity margins. Only 10 per cent of them offer payment terms exceeding 90 days, compared to 20 per cent of large companies.
In terms of economic sectors, the automotive and transport industry is the most affected, with 95 per cent of businesses reporting delays. Companies in the construction sector also stand out in the analysis: 93 per cent reported delays while also having to wait the longest – 38.2 days – for their invoices to be paid. Across all industries, financial difficulties are cited as the main reason for the delays, although operational issues and payment delays unrelated to liquidity problems also play a role.
Insolvencies have peaked
According to Coface, the trend observed in insolvencies marks an easing from the peak. The phase of record-high insolvency figures between July 2023 and July 2024 seems to have come to an end, it writes, as the number of companies going insolvent fell by more than 1,000 to around 25,400 in the following year. However, Coface’s experts note: “Despite the overall decline, a concerning trend persists.” Here, Coface is referring to the 4,200 compulsory liquidations between June 2014 and June 2025, which represents an increase of 12.3 per cent. Among those most at risk are manufacturing companies, which Coface says have been hit by high energy prices, and firms in the construction sector, which are particularly affected by payment delays.
Fundamental risks replace global issues
Companies' risk assessments reflect the fact that they have become accustomed to global shocks, according to Coface. “The focus has returned to fundamentals: managing debt obligations, controlling labour costs, maintaining critical systems, and ensuring stable, affordable, and efficient production,” it writes. Companies see higher interest rates and cyber-attacks as the greatest potential risks, followed by new regulations, supply chain disruptions, skills shortages, geopolitics, access to finance, and the consequences of climate change.
Political measures target payment behavior
Politically, there are grounds for optimism, according to the analysis, although this fall could still bring tax increases. Payment security is likely to increase on the basis of recent legislative changes, including extended reporting requirements with regard to payment practices, in force since the beginning of 2025. The government has also proposed further measures, such as the introduction of maximum payment terms – of 60 days initially and 45 days thereafter. Seventy-five per cent of companies say the proposed legislation would support business confidence and investment decisions. However, micro and small businesses are less enthusiastic about the planned measures – presumably, according to Coface, because they themselves need to delay payments in difficult times.
Business climate brightens
Looking ahead, 37 per cent of companies anticipate fewer payment delays, with medium-sized and large companies being particularly optimistic. The ICT sector is especially positive. Around 30 per cent of the companies surveyed expect the negative trend to continue. The positive outlook on overall economic development is more consistent, with 47 per cent of companies citing optimism. A similarly high proportion also expects the global business environment to improve. Just under 50 per cent of export-oriented companies have their sights set on the European Union (EU), 47 per cent on the US, and 12 per cent on China.
Export opportunities have a significant influence on a company’s choice of location, according to Coface’s experts. At 55 per cent, more than half of those surveyed have already relocated their operations, or are in the process of doing so. Of these, 38 per cent have moved to the EU and 37 per cent to the US. Coface says it is notable that 12 per cent of companies have reported looking to India.
The United Kingdom is essential for Swiss services
The situation is particularly relevant for Switzerland because the UK is its third most important trading partner in services, after the United States and Germany. According to figures from the State Secretariat for Economic Affairs (SECO), services worth CHF 12.6 billion were imported and exported, respectively, in 2023. Conversely, Switzerland ranks seventh among the UK’s trading partners. There are also close ties in direct investment: in 2023, Switzerland ranked eighth in the UK and the UK ranked seventh in Switzerland. According to Coface, European trading partners are likely to gain even more importance in light of U.S. trade policies and global tensions. Switzerland, too, is under pressure. While it continues to receive the top A1 rating in Coface’s current risk barometer, risks for sectors such as automotive and metals are now considered extremely high.
> Read the full UK Payment Survey (.pdf) <
