Is late payment a big problem in the manufacturing sector?

Yes. The manufacturing sector has a higher rate of late payment than the UK average. 27% of invoices are paid late, compared to a national average of 24%.

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 manufacturing

How the UK manufacturing sector compares on payment practices, based on official government data from 153 reporting companies.

Overview

Manufacturing companies tend to have some of the longest average payment times in the UK. Complex supply chains, large order values, and traditional business practices all contribute to slower payments. Many manufacturers still operate on 60 to 90 day terms as standard.

Key statistics

Avg. days to pay

UK median: 32

Invoices paid late

27%

UK average: 24%

Companies reporting

153

of 9,336 total

Manufacturing companies pay their suppliers in 51 days on average, which is 19 days slower than the UK median of 32 days. 27% of invoices in this sector are paid after the agreed terms.

Slowest payers in manufacturing

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

Company	Avg. days	% paid late
UNITED CLOSURES AND PLASTICS LIMITED	68	97%
BLUE CHIP CUSTOMER ENGINEERING LIMITED	40	91%
TITAN STEEL WHEELS LIMITED	47	90%
TATA STEEL UK LIMITED	105	89%
MALLAGHAN ENGINEERING LIMITED	81	88%
HARSCO METALS GROUP LIMITED	51	83%
ENI MOZAMBIQUE ENGINEERING LIMITED	93	81%
KLM UK ENGINEERING LIMITED	31	81%
BRITISH STEEL LIMITED	70	80%
CROWN PACKAGING MANUFACTURING UK LIMITED	81	79%

Advice for freelancers working in manufacturing

Negotiate your payment terms before accepting a manufacturing contract. If you are supplying specialist parts or services, you have more negotiating power than you might think. Include clear late payment terms in your contracts and do not be afraid to enforce them.

Frequently asked questions

Based on official government data, manufacturing companies take an average of 51 days to pay their suppliers. 27% 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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