WHITO GLOSSARY · MEASURED DEFINITIONS
Payment of an invoice after its agreed date. Late payments cost the UK economy almost £11 billion a year and close about 14,000 businesses, 38 a day, with 44% of SME invoices paid late.
The number: UK Late Payment Statistics.
What it means in practice
Small firms treat chasing invoices as awkward and treat the cost as invisible. It is neither: the money you have earned but not received is the cheapest working capital you will ever recover.
Put payment terms in writing, invoice on delivery, chase on day one late, and charge the interest the law already gives you.
Whito stage: Any stage. Use it before you sign anything.
The numbers to hold onto
- 44% of SME invoices are paid late. UK Late Payment Statistics.
- Late payment closes about 14,000 UK businesses a year, 38 a day. UK Late Payment Statistics.
- The interest you can already charge is 8% above base under the 1998 Act. Late Payment Interest You Can Already Charge.
Where to go next
- UK late payment statistics
- The interest you can already charge
- Which UK businesses are thriving anyway
Related: Statutory late payment interest, Business churn, Business confidence