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UK small businesses are owed £112 billion in unpaid invoices.


Nearly half of invoices are paid late.

Around 38 SMEs close every day where late payment is a factor.


The proposed solution? More transparency.


But transparency does not change incentives.


Late payment persists because it is financially advantageous.


In our latest blog, CPA proposes structural reform:


Require companies to recognise statutory late payment interest and compensation as a provision on their balance sheet — reducing reported profit and making the liability visible.


If behaviour is going to change, the calculation must change.


Read the full proposal and watch the video here:

cpa.co.uk/why-late-payment-persists/


#LatePayment #SMEs #Cashflow #UKBusiness #CreditControl #StatutoryInterest #BusinessReform #InsolvencyRisk #CorporateGovernance