According to a new survey by Capital on Tap, only 1% of small businesses in the UK have never had to deal with an overdue invoice. Late payments can have a big effect on cash flow and resources, but what is the true impact of unpaid invoices?

To find out, the survey has asked over 250 small business owners about how often they have to chase unpaid invoices, how much delayed income they are waiting to receive, and also which industries they find to be the worst culprits when it comes to late payments. The UK Managing Director at Capital on Tap has also provided some top tips for how to successfully chase overdue invoices.

The full research can be found here: https://www.capitalontap.com/en/blog/posts/unpaid-invoices/

Small businesses in the UK are currently waiting for an average of £7.4 billion in unpaid invoices

The financial impact of late payments can be huge, and, on average, businesses in the UK are currently waiting on £7.4 billion in overdue invoices. However, the study has revealed that the impact of unpaid invoices varies significantly across different industries.

Retailers are currently being affected the most, with businesses in this industry facing around £1,532 worth of unpaid invoices. In second place are those in the electrical services sector, with businesses waiting for £1,501, on average. Businesses in the industrial equipment sector have come in third, with owners suggesting around £1,451 are wrapped up in unpaid invoices.

Small businesses in the property management and development sector are seeing the least financial impact, at £1,032 — though this is still a significant amount.

Rank
Industry
Amount of money business owners are waiting on due to unpaid invoices
1
Retailers (except food & drug)
£1,532
2
Electrical Services
£1,501
3
Industrial equipment: Nonferrous metals/minerals
£1,451
4
Health care
£1,448
5
Containers & glass products
£1,426
On average, small businesses in the UK have to chase overdue invoices twice a week

According to those surveyed, businesses in the UK are spending an average of eight times per month chasing unpaid invoices. When it comes to different industries, the education sector spends the most time chasing overdue invoices, with businesses having to follow up on late payments around 11 times every month.

In second place is the home furnishing industry, with business owners saying they chase delayed payments 10 times a month, on average. In joint third place are those in the healthcare, electrical services, and consulting sectors, with companies in these industries having to chase unpaid invoices around nine times per month.

In terms of who is least likely to be impacted, those in the restaurant and food industry are having to follow up just four times per month.