Summary
According to Sage's June 2026 SME Performance Pulse, 49 per cent of invoices issued by UK small businesses are overdue. The delay is cascading: SMEs now take an average of 37.1 days to pay their own suppliers, up from 31.9 days a year earlier, as delayed income forces them to extend their own payment cycles.
Greater Manchester manufacturing and construction firms operating around Trafford Park and elsewhere in the region are hit hardest, as payment delays further up supply chains disrupt payroll and materials orders. Research by Hiscox found UK SMEs are collectively owed £70.4 billion, and the Federation of Small Businesses estimates around 50,000 UK small businesses close annually due to cash flow problems linked to late payment.
Businesses can protect themselves by formalising payment terms in writing, running credit checks on clients, and issuing payment reminders. The Late Payment of Commercial Debts (Interest) Act 1998 entitles firms to charge statutory interest of 8 per cent above Bank of England base rate on overdue invoices, plus reasonable recovery costs, though prevention through early action remains more effective than recovery.
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This is a summary written for the Manchester Business Services register. The full article belongs to Business Manchester — read it at source.
Common questions
- What is this article about?
- Nearly half of UK small business invoices remain overdue, with firms waiting an average of 27 days beyond agreed terms, forcing Greater Manchester SMEs to delay their own supplier payments. Manufacturing and construction firms in the region face particular pressure from extended payment chains, with some businesses closing entirely due to cash flow strain.
- When was this published?
- This article was published on 4 September 2026.
- Who published this article?
- This article was published by Business Manchester.