Is late payment a big problem in the hospitality sector?

The hospitality sector is slightly better than the UK average, with 24% of invoices paid late compared to 24% nationally. However, late payment still affects freelancers and suppliers in this sector.

Can I charge interest on late invoices?

Yes. Under the Late Payment of Commercial Debts Act 1998, you can charge statutory interest at 8% plus the Bank of England base rate on any overdue business-to-business invoice. You can also claim fixed compensation of £40 to £100 per invoice. You do not need to include this in your contract for it to apply.

How can I check if a specific company pays on time?

Use the PennyFetch payment checker tool to search over 9,000 large UK companies and see their actual payment record, including average days to pay, percentage of invoices paid late, and whether their payment speed is improving or getting worse.

Industry Data

Late payment in hospitality

How the UK hospitality sector compares on payment practices, based on official government data from 214 reporting companies.

Overview

The hospitality sector has above-average payment times and a significant percentage of invoices paid late. Many hospitality businesses operate on tight cash flow margins, and seasonal fluctuations can make payment patterns unpredictable. Smaller suppliers and freelancers are often the last to be paid.

Key statistics

Avg. days to pay

UK median: 32

Invoices paid late

24%

UK average: 24%

Companies reporting

214

of 9,336 total

Hospitality companies pay their suppliers in 44 days on average, which is 12 days slower than the UK median of 32 days. 24% of invoices in this sector are paid after the agreed terms.

Slowest payers in hospitality

These are the hospitality companies with the highest percentage of invoices paid after the agreed terms, based on their most recent government filing.

Company	Avg. days	% paid late
CATERMASTERS CONTRACT CATERING LIMITED	67	99%
UNIQUE PUB PROPERTIES LIMITED	64	98%
SHEARINGS HOTELS LIMITED	39	98%
JAMES CROPPER PUBLIC LIMITED COMPANY	20	97%
POWER LEISURE BOOKMAKERS LIMITED	16	95%
F.W. THORPE PUBLIC LIMITED COMPANY	46	93%
LONDON TARA HOTEL LIMITED	45	91%
BREYER GROUP PUBLIC LIMITED COMPANY	70	90%
CATERING ACADEMY LIMITED	64	90%
KINGSWOOD LEARNING AND LEISURE GROUP LIMITED	57	83%

Advice for freelancers working in hospitality

If you work with hotels, restaurants, or event venues, try to negotiate shorter payment terms (14 days rather than 30) and consider asking for deposits on larger projects. Cash flow problems are common in hospitality, so the earlier you send reminders the better.

Frequently asked questions

Based on official government data, hospitality companies take an average of 44 days to pay their suppliers. 24% of invoices in this sector are paid later than the agreed terms.

Related tools and guides

Company payment checker

Look up a specific company to check their payment record.

All industry statistics

Compare late payment across every UK sector.

Late payment interest calculator

Work out what you are owed in interest and compensation.

How to chase an unpaid invoice

Step-by-step guide with email templates.

Data from the UK Government Payment Practices Reporting service. Published under the Open Government Licence v3.0. Industry classification and analysis by PennyFetch. This page is for informational purposes and does not constitute financial or legal advice.

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