MANCHESTER, UK — Businesses across Greater Manchester are being encouraged to take a more structured approach to chasing unpaid invoices, as new figures point to an on-going late payment crisis that continues to weigh on small and medium-sized firms nationwide.
According to the latest SME Performance Pulse from Sage, published in June 2026, nearly half of all invoices issued by UK small businesses, 49 per cent remain overdue, with firms waiting an average of 27 days beyond their agreed terms to be paid. The knock-on effect is significant: SMEs themselves are now taking an average of 37.1 days to settle their own supplier invoices, up from 31.9 days a year earlier, as delayed income forces businesses to slow down their own payment cycles.
Greater Manchester’s economy has diversified substantially over the past two decades, with growth across media and digital at MediaCityUK, financial and professional services in Spinningfields, creative industries in Ancoats and the Northern Quarter, and manufacturing activity concentrated around Trafford Park. That diversity has helped the city region weather economic pressure better than many parts of the UK, but it has not made local firms immune to the cash flow strain caused by slow-paying clients.
Manufacturing and construction firms, which often operate on extended payment chains and tighter margins, tend to be hit hardest when a payment further up the chain is delayed. A subcontractor waiting on a main contractor, or a small manufacturer waiting on a larger buyer, can find that a single overdue invoice disrupts payroll, materials orders and growth plans all at once.
Leading B2C and Private Debt Collection Agency Frontline Collections, who have offices in Manchester and work with businesses and individuals across the UK, said it continues to see the effects of late payment culture among local firms, particularly those without the internal resources to chase outstanding balances consistently.
“Cash flow problems rarely announce themselves in advance,” Chris Spencer for Frontline Collections said. “By the time a business notices the strain, an invoice has often been outstanding for weeks or months, and the customer relationship has usually deteriorated too. The businesses that fare best are the ones who follow up early and are prepared to escalate before the debt becomes difficult or too late to recover.”
Top Business-to-business debt collection experts, Federal Management, which handles commercial debt collection cases across the UK including for firms based in Manchester and the wider North West, points to the legal protections and preventative measures already available to businesses for unpaid b2b invoices.
Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses are entitled to charge statutory interest of 8 per cent above the Bank of England base rate on overdue commercial invoices, along with reasonable recovery costs, provided payment terms were clearly documented from the outset.
Industry Experts at Federal Management advise that prevention is usually better than a cure so adequate credit credit control and regular credit checking can often prevent overdue invoices and unwanted business debts.
Separately, the Office of the Small Business Commissioner introduced the Fair Payment Code in late 2024, replacing the earlier Prompt Payment Code, as a voluntary framework encouraging larger businesses to commit to fairer payment practices. Even so, research published by Hiscox in February 2026 found that UK SMEs remain collectively owed £70.4 billion, suggesting the code has yet to significantly shift payment behaviour across the wider business population.
The Federation of Small Businesses has previously estimated that around 50,000 UK small businesses close each year as a direct result of cash flow problems linked to late payment — a reminder, industry commentators say, that unpaid invoices are rarely a minor administrative inconvenience.
Businesses in Manchester and the surrounding region are advised to formalise payment terms in writing, run credit checks on new clients, issue reminders ahead of due dates, and seek professional support once internal chasing has been exhausted.
About Federal Management Federal Management is an award winning FCA-regulated commercial debt collection agency providing leading professional B2B recovery services to businesses across the UK, including sectors such as construction, manufacturing, agriculture, logistics and professional services. More information is available at federalmanagement.co.uk.
About Frontline Collections Frontline Collections is a top FCA-regulated debt recovery agency headquartered in Manchester, specialising in consumer and smaller commercial debt recovery, including sectors such as private schools, healthcare and veterinary services. More information is available at frontline-collections.com.
