Almost all companies in the United Kingdom are now facing late payments, according to the 2025 United Kingdom Payment Survey. While overall insolvencies are starting to decline, compulsory liquidations are on the rise, and the business environment remains challenging despite a generally positive economic outlook.
Payment delays hit record levels across UK businesses
Payment delays have become more widespread across all sectors of the UK economy. The main reasons identified are a cooling economic climate and persistently high costs. Based on a survey of nearly 700 companies conducted in July 2025, the average delay now stands at just under 32 days. More than a quarter of respondents reported an increase in late payments, and 90% experienced delays last year – a remarkably high figure by international standards.
With an average payment period of 51 days, the United Kingdom is comparable to France. In Asia-Pacific, companies tend to grant longer terms of around 65 days, while in Latin America the average is 53 days. German businesses, on the other hand, usually operate with significantly shorter payment terms of around 32 days.
Extended payment terms put pressure on small firms
Half of the companies surveyed – from microenterprises to large corporations – reported having extended their payment terms last year. This represents a major financial effort, especially for small businesses operating with limited liquidity margins. Only 10% of small companies offer payment terms exceeding 90 days, compared to 20% of large firms.
The automotive and transport sectors are the most affected, with 95% of businesses reporting overdue invoices. Construction follows closely, with 93% of companies impacted and average waiting times of 38.2 days for invoice payments. Across all sectors, financial difficulties remain the leading cause of late payments, though operational issues and administrative inefficiencies also play a role.
Insolvencies ease, but compulsory liquidations remain high
After reaching record highs between mid-2023 and mid-2024, the number of insolvencies has started to decline, falling by more than 1,000 cases to around 25,400 over the past year. However, compulsory liquidations continue to increase, up by 12.3% year-on-year to 4,200 cases. Manufacturing companies – hit by high energy prices – and construction firms – affected by liquidity constraints – remain among the most vulnerable.
Fundamental risks replace global issues
UK companies appear to have adapted to global shocks and are now refocusing on core operational risks: managing debt obligations, controlling labour costs, maintaining critical systems, and ensuring stable, efficient production. Higher interest rates and cyber-attacks are perceived as the most significant threats, followed by new regulations, supply chain disruptions, skills shortages, geopolitics, access to finance, and the effects of climate change.
Government measures aim to secure payments
From a policy perspective, there are reasons for cautious optimism, even though the autumn could still bring tax increases. New legislative measures introduced in early 2025 strengthen payment transparency through extended reporting obligations. The government has also proposed maximum payment terms – initially 60 days, later reduced to 45 days – to further secure payment flows.
While 75% of surveyed companies believe such measures would support business confidence and investment, micro and small enterprises are more reserved, as they often rely on flexible payment schedules to manage cash flow during difficult periods.
Outlook 2026: business confidence improves despite challenges
Looking ahead, 37% of companies expect fewer payment delays in the coming year, with optimism strongest among medium-sized and large firms, particularly in the ICT sector. Around 30% still anticipate a continuation of current trends, but overall economic sentiment remains positive: nearly half of respondents are optimistic about both the UK economy and the global business environment.
Export-oriented companies are increasingly focused on Europe and North America, with 50% targeting the EU and 47% the US as key markets. Moreover, 55% of companies have already relocated or are planning to relocate parts of their operations – primarily to the EU (38%) and the US (37%), but also to India (12%), which is gaining in attractiveness.
Why UK trends matter for Swiss exporters
The findings are of particular relevance to Switzerland, as the UK remains its third most important trading partner in services, after the United States and Germany. In 2023, bilateral service trade reached CHF 12.6 billion in both directions, according to the State Secretariat for Economic Affairs (SECO). Conversely, Switzerland ranks seventh among the UK’s trading partners. Switzerland and the UK also maintain close investment ties: each ranks among the other’s top ten foreign investors.
Given ongoing geopolitical and trade tensions, European partnerships are expected to become even more significant. Switzerland continues to benefit from a top-tier country risk rating (A1) as of Coface’s current risk barometer. Yet sector-specific vulnerabilities – notably in automotive and metals – are being closely monitored due to their current extremely high risk rating.
> Read the full UK Payment Survey (.pdf) <
