The average 30-day invoice terms for the UK saw 36% of bills paid late, it’s not the worst, but it’s also not the best when this is the standard payment date for businesses to be paid in the UK.
Based on our research, we can already see the businesses changing their invoice terms to either half that of the UK standard or over 30 days are seeing the best results in getting payments in. Therefore if you want to be paid within 30 days, it would make sense to shorten your payment terms to 14 days based on our analysis of invoices in the previous 12 months.
However, if you have the funds to tolerate a longer wait for payment, setting invoice terms over 30 days would give you more of an accurate forecast of when money should be coming into your business. For example, invoices that had a set payment date for 90 days were, on average, only 4 days late. In comparison, a 21-day invoice term has an average DBT of 19 days- a much longer wait that you may not be prepared for.