Half of invoices in freight transport paid late

It found 46% of outstanding invoices sent out by businesses within the industry were paid late.

Of these, 19% were between one and 30 days late; 5% were between 31 and 60 days; 2% were up to 90 days’ late and 20% were still not paid even after three months.

The majority of companies researched in the report by payment technology firm Upflow were SMEs that generated revenues less than £50m.

It found that in industries like research, HR, transport and logistics and media and publishing, the percentages of invoices overdue by one to 30 days was higher than other sectors.

Late payments cost small businesses an estimated £1.6bn in 2023.

Alex Louisy, CEO at Upflow, said: “What our report has outlined is that late payments are a significant issue across various industries, causing substantial cash flow challenges for businesses.

“The data highlights that over half of invoices are paid late, with some sectors experiencing even higher rates of delay.

“These insights underscore the urgent need for businesses to adopt more robust payment processes. By addressing the root causes of payment delays and implementing effective strategies, companies can improve their cash flow and overall financial health.”

Earlier this year, campaign group Good Business Pays published research naming and shaming businesses that were classed as late or serially-late payers, including companies in the haulage industry.