Analysis of data from Sidetrade shows that late payments from retailers in the UK are now at their highest ever levels. Nearly a quarter (23%) of invoices last month from UK retailers were classed as overdue.
The Unpaid Invoice Tracker from Sidetrade examines 162 million invoices worldwide from 8.6 million companies across all sectors. The latest data shows that the number of invoices that were overdue from UK retailers hit the highest ever level in October 2021 since the tracker was launched in January 2020.
Rising number of late payments from retailers
The analysis of the invoice data from 1st – 30th October 2021 highlights that the average percentage of late payments from retailers increased by 14% from the peak of the coronavirus pandemic in May 2020. The average number of unpaid invoices by retailers increased from 12.5% for the same period in 2020.
The monthly average of late payments from retailers between January and August 2021 was 9.7%. At the end of August, the average had risen to 10.2%, but there was a significant jump to 17.4% of invoices paid late in September. This was the largest month on month rise since the records started.
Overall UK late payments
Across all sectors, there was a rise in the number of late payments for October. This was up to 24.3% from 22.3% in September – which was already the highest level since March 2021 when the average had reached 22.4%. Before September the situation regarding late payments had been gradually improving month on month since March.
Rob Harvey, Chief Product Officer of Sidetrade commented: “The rising trend of unpaid invoices that we’re continuing to see in our data overall is likely attributed to a number of factors.
“For the retail sector in particular, the ongoing global supply chain issues and worker shortages are presenting increasing challenges for companies, as the cost of running their business increases, competition intensifies, and future balance sheet strains become harder to forecast. These factors may be having a knock-on effect on company cashflow which in turn is resulting in delayed payments.”
Help with unpaid invoices from retailers
Whatever sector you are struggling to collect late payments from, including retail customers, at CEA Limited we can help you recover your debts.
Our professional and experienced credit control team work with clients across all sectors to collect unpaid invoices and late payments from retailers and other clients. As soon as invoices become overdue our collection process begins. This starts with late payment reminders by letter and email. They are then followed up by telephone calls and visits where required.
Often bringing in a third-party collection company is all it requires to get the invoices paid. We will add on late payment charges and interest, where applicable, and can even continue the collection process through the court system if necessary, including County Court Judgements and High Court Enforcement.
For more information on how we can recover your late payments from retailers, contact our debt recovery team on 0113 532 8350 or email office@cealimited.co.uk.