Late payments have long been a challenge in global supply chains. Half of all supplier invoices worldwide are paid late, costing businesses an average of $45 million annually in disruptions.
But with the UK government’s recent crackdown on late payments, the stakes are now even higher.
For companies operating in the UK, failure to pay suppliers on time no longer just harms relationships—it could result in fines worth millions of pounds.
Yet, with the right technology, organizations can transform how they handle accounts payable, turning a compliance challenge into a competitive advantage.
For suppliers—particularly small and mid-sized businesses—on-time payments are essential. When payments are delayed, cash flow becomes strained, livelihoods are put at risk, and trust between buyers and suppliers begins to break down. These delays can also trigger wider disruptions that ripple across entire supply chains.
The UK’s 2025 legislation recognizes this challenge by enforcing a30-day payment mandate.
Companies that pay more than 25% of invoices late now face penalties calculated at up to double the statutory interest rate—a serious cost that could amount to tens of millions of pounds each year for large enterprises.
Manual invoice processing is slow, error-prone, and costly. Basware automation changes the game by enabling:
The results speak for themselves:
By automating key steps in the payment process, organizations not only improve accuracy and speed but also create a foundation for stronger, more resilient supplier relationships.
Basware customers are already demonstrating how automation leads to stronger performance and supplier trust.
Specsavers, a UK-based healthcare retailer processing over 90,000 invoices monthly, used Basware’s Statement Matching and P2P solutions to transform their accounts payable operations.
By automating reconciliation, they significantly reduced manual errors and cut down overdue invoice issues—leading to faster payment cycles, fewer supplier queries, and improved service quality.
Across Basware’s customer base, AP teams have reduced average supplier payment times by 38% in the first year. These improvements unlock additional benefits, including early payment discounts and optimized cash flow management.
The UK’s late payment crackdown is an opportunity disguised as a challenge. Organizations that modernize their accounts payable processes gain more than compliance—they achieve greater efficiency, transparency, and supplier trust.
With Basware, every invoice is processed accurately and on time, penalties and reputational risks are avoided, supplier relationships are strengthened, and cash flow improves through optimized payment runs and early payment discounts.
Late payments are no longer an acceptable risk. With regulation now enforcing stricter standards, companies must take decisive action. Basware automation empowers organizations to meet compliance requirements while also driving cost savings and stronger supplier partnerships.
By paying on time, you do more than avoid fines—you demonstrate resilience, responsibility, and leadership. Speak to a member of the team today to discover how Basware turns compliance into a competitive advantage.