Marsh finds 76% of UK businesses have suffered late-payment losses

More than three-quarters of UK businesses have experienced financial losses caused by late payments, according to new research from Marsh that points to widening trade credit and supply chain exposure despite high levels of corporate confidence.

The insurance broker’s 2026 Trade Credit Risk Report surveyed 1,000 UK chief executives and finance directors. It found that 76% had suffered losses linked to delayed payments, while 98% nevertheless believed their organisation was resilient to financial exposure risk.

The gap between confidence and reported losses is central to the study. Marsh said businesses were also facing increased bad-debt write-offs, higher collection costs and growing customer and supplier concentration.

Almost all respondents, 99%, said their business was becoming increasingly dependent on a small number of key suppliers. Such concentration can leave companies exposed if a strategically important supplier experiences financial distress, operational disruption or difficulty accessing working capital.

The report also identifies expanding credit exposure as businesses offer more generous payment terms to support sales. Extending credit can help companies retain customers during difficult trading conditions, but it also increases the period for which cash remains tied up in receivables and raises the potential loss if a buyer fails.

Marsh said digital disruption and artificial intelligence were adding to operational and credit vulnerabilities. Faster automated decision-making can improve efficiency, but poor data or weak oversight may allow emerging risks to spread more quickly across customer, payment and supply chain processes.

Ian Leslie, managing director and head of trade credit at Marsh Risk, said the findings showed why businesses needed to look beyond confidence alone. He said financial resilience depended on understanding where exposure was increasing and taking action before losses became material.

The research reinforces demand for stronger credit monitoring, receivables finance and trade credit insurance, although those tools address different parts of the risk. Finance can release cash from unpaid invoices, while insurance may protect against qualifying buyer defaults.