UK among worst in Europe for payment delays

Its statistics revealed the best and worst markets and industries for late payments over the last three years, and its research was based on the payment behaviour of 20.7 million buying companies across the world.

The data found that, on average, companies around the world pay supplier invoices 21 days late. The average length of time between an invoice’s issuance and getting paid is 53 days.

Companies within the UK and Ireland are among the top four worst in Europe, Sidetrade said, with mean payment delays of 21 and 26 days respectively.

The country ranked the worst was France, with 25 percent of the value of all overdue invoices as of 16 April 2022. Sweden was ranked the best, with a seven-day delay.

In the UK, the industries with the shortest payments delays are utilities and energy (19 days) and retail and consumer packaged goods (20 days).

UK industries with the longest delays include financial services and insurance (25 days), public services, human resources services and transportation and logistics – all at 24 days.

Chief executive of Sidetrade Olivier Novasque said: “Protecting and accelerating cash flow has never been so critical as bad debt risk and inflation are dramatically increasing everywhere.

“This can best be achieved if companies harness enough customer behaviour data and become more forward-looking. Data science and artificial intelligence are essential to fighting against late payment. Since each buyer’s payment behaviour is different, a dedicated and automated collection strategy is needed to be efficient.”