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Are you losing the most irrecoverable resource? For countless small businesses in the UK, the task of chasing overdue invoices has become an unwelcome aspect of daily operations. Recent research from 2025 reveals that the cost of late payments extends far beyond the financial impact; it’s affecting time, mental well-being, and future growth in ways that many might not fully appreciate.
A government-commissioned study highlights a staggering statistic: small businesses spend an average of 86 hours each year pursuing unpaid invoices. That equates to more than two full working weeks of wasted time on administrative tasks that should never have existed in the first place.
When viewed from a broader perspective, this translates to approximately 133 million hours of lost productivity across the economy each year.
However, the repercussions don’t stop at lost time; they extend to diminished growth, instability, and, in some cases, the very survival of businesses.
The statistics
- The UK’s small business community is owed an estimated £26 billion in late payments at any given time.
- Nearly one in five small firms reports dedicating significant staff time to chasing debtors.
- Late payments are responsible for the closure of approximately 14,000 businesses each year, nearly 40 firms every single day.
Behind these numbers are dedicated business owners spending their evenings sending reminders, reissuing invoices, and worrying about how to manage their own bills amidst late payments.
Time is the one thing you can never recover
While unpaid invoices certainly hinder cash flow, the larger, often invisible loss is the precious time spent following up, negotiating, and fretting over overdue payments. That’s time you could have directed towards acquiring new clients, enhancing service, or driving your business forward.
Looking for a solution?
Late payment shouldn’t be seen as “just part of doing business”. According to 2025 data, this issue is escalating.
Partnering with a reputable debt recovery firm can help you efficiently recover your outstanding invoices, allowing you to focus on your core business.
Regardless of whether you’re dealing with one overdue invoice or facing an accumulating backlog, acting early can make a significant difference.
Take back control of your time as well as your cash flow.