Payment Terms Statistics
Last updated: 2026-10-28 · 12 sourced statistics
Payment terms set the due date, and the law sets the outer limits. In the EU, Directive 2011/7/EU limits business-to-business terms to 60 calendar days unless expressly agreed otherwise, and public authorities to 30 days. US federal agencies generally pay within 30 days of receiving a proper invoice. Whether terms are met is a separate question: UK large businesses paid 15% of their invoices late in 2025, down from 25% in 2018, and manufacturers had the highest late share at 21%. Survey data also links longer terms with more overdue invoices: 55% of US small businesses on net-30 terms have overdue invoices, against 26% of those asking for immediate payment. Every figure below links to the official text or report that states it.
Key takeaways
- Legal defaults cluster around 30 and 60 days: 60 days for EU B2B contracts, 30 days for EU public authorities and US federal agencies.
- UK large businesses paid 15% of invoices late in 2025 (14% of invoice value), down from 25% by number in 2018.
- Sector matters: UK manufacturers paid 21% of invoices late, the highest share of any sector, against 9% in accommodation and food services.
- Tighter terms are being proposed on both sides of the Channel: a 30-day maximum in the EU's blocked 2023 proposal and a 60-day cap in the UK's March 2026 package.
- In a US vendor survey, 55% of businesses on net-30 terms had overdue invoices, against 26% on immediate terms.
At a glance.
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| 60 days | EU Member States must ensure that business-to-business payment periods fixed in a contract do not exceed 60 calendar days, unless otherwise expressly agreed and not grossly unfair to the creditor (Article 3(5)). | EU Late Payment Directive 2011/7/EU (EUR-Lex) | 2011 |
| 30 days | Where an EU contract sets no payment date, the creditor is entitled to late-payment interest 30 calendar days after the debtor receives the invoice (Article 3(3)(b)). | EU Late Payment Directive 2011/7/EU (EUR-Lex) | 2011 |
| 30 days | When the debtor is an EU public authority, the payment period must not exceed 30 calendar days from receipt of the invoice, with limited exceptions (Article 4(3)). | EU Late Payment Directive 2011/7/EU (EUR-Lex) | 2011 |
| 30-day max | The European Commission's 2023 proposal for a Late Payment Regulation would introduce a stricter 30-day maximum payment term; the European Parliament lists the file as blocked in the Council (updated 20 September 2026). | European Parliament, Legislative Train: Revision of the late payments directive | 2026 |
| 15% | 15% of invoices by number, and 14% of invoice value, were paid late by UK large businesses in 2025, down from 25% by number in 2018, based on 11,178 valid reports. | Department for Business and Trade, Large businesses' payment practices and performance statistics 2025 (14 July 2026) | 2026 |
| 21% vs 9% | Large UK businesses in manufacturing had the highest share of invoices paid late by number in 2025, at 21%, and those in accommodation and food services the lowest, at 9%. | Department for Business and Trade, Large businesses' payment practices and performance statistics 2025 (14 July 2026) | 2026 |
| 95% in 30 days | The UK Fair Payment Code's Gold award requires paying at least 95% of all invoices within 30 days; Silver and Bronze require 95% within 60 days, with Silver also requiring 95% of small-business invoices within 30 days. | Office of the Small Business Commissioner, Fair Payment Code criteria | 2026 |
| 60-day cap | The UK government's March 2026 late payment package proposes a 60-day cap on the payment terms big companies can set when paying smaller suppliers. | Office of the Small Business Commissioner (UK), 24 March 2026 | 2026 |
| 30 days | Under the US Prompt Payment Act rules, when a federal agency does not take an early-payment discount, payment is due within 30 days of receipt of a proper invoice unless the agency uses accelerated payment. | US Treasury Bureau of the Fiscal Service, Prompt Payment: discounts | 2019 |
| 4.75% | Federal agencies that pay contractors late owe a Prompt Payment interest penalty, set at 4.75% a year for July to December 2026 (4.125% for January to June 2026). | US Treasury Bureau of the Fiscal Service, Prompt Payment interest rates | 2026 |
| 55% vs 26% | 55% of US small businesses on net-30 terms have overdue invoices, compared with 26% of those on immediate terms (vendor survey). | Intuit QuickBooks Small Business Late Payments Report 2026 | 2026 |
| 64% vs 34% | Among US small businesses with no overdue invoices, 64% require immediate payment; among those with overdue invoices, 34% do (vendor survey). | Intuit QuickBooks Small Business Late Payments Report 2026 | 2026 |
The statistics
EU Member States must ensure that business-to-business payment periods fixed in a contract do not exceed 60 calendar days, unless otherwise expressly agreed and not grossly unfair to the creditor (Article 3(5)).
Where an EU contract sets no payment date, the creditor is entitled to late-payment interest 30 calendar days after the debtor receives the invoice (Article 3(3)(b)).
When the debtor is an EU public authority, the payment period must not exceed 30 calendar days from receipt of the invoice, with limited exceptions (Article 4(3)).
The European Commission's 2023 proposal for a Late Payment Regulation would introduce a stricter 30-day maximum payment term; the European Parliament lists the file as blocked in the Council (updated 20 September 2026).
Source:European Parliament, Legislative Train: Revision of the late payments directive2026
15% of invoices by number, and 14% of invoice value, were paid late by UK large businesses in 2025, down from 25% by number in 2018, based on 11,178 valid reports.
Large UK businesses in manufacturing had the highest share of invoices paid late by number in 2025, at 21%, and those in accommodation and food services the lowest, at 9%.
The UK Fair Payment Code's Gold award requires paying at least 95% of all invoices within 30 days; Silver and Bronze require 95% within 60 days, with Silver also requiring 95% of small-business invoices within 30 days.
Source:Office of the Small Business Commissioner, Fair Payment Code criteria2026
The UK government's March 2026 late payment package proposes a 60-day cap on the payment terms big companies can set when paying smaller suppliers.
Source:Office of the Small Business Commissioner (UK), 24 March 20262026
Under the US Prompt Payment Act rules, when a federal agency does not take an early-payment discount, payment is due within 30 days of receipt of a proper invoice unless the agency uses accelerated payment.
Source:US Treasury Bureau of the Fiscal Service, Prompt Payment: discounts2019
Federal agencies that pay contractors late owe a Prompt Payment interest penalty, set at 4.75% a year for July to December 2026 (4.125% for January to June 2026).
Source:US Treasury Bureau of the Fiscal Service, Prompt Payment interest rates2026
55% of US small businesses on net-30 terms have overdue invoices, compared with 26% of those on immediate terms (vendor survey).
Source:Intuit QuickBooks Small Business Late Payments Report 20262026
Among US small businesses with no overdue invoices, 64% require immediate payment; among those with overdue invoices, 34% do (vendor survey).
Source:Intuit QuickBooks Small Business Late Payments Report 20262026
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- Legal limits are defaults with exceptions. The EU 60-day limit can be exceeded if expressly agreed and not grossly unfair to the creditor, and each Member State's national law implements the directive. Check the law that governs your contract.
- The UK payment practices statistics cover only large businesses that must report (those exceeding two of £54 million turnover, £27 million balance sheet and 250 employees). They do not describe how small firms pay each other.
- The US Prompt Payment Act applies to federal agencies paying contractors. There is no general federal cap on payment terms between private US businesses.
- QuickBooks figures are from a vendor-commissioned survey of 1,305 US business owners in December 2025. They show an association between terms and overdue invoices, not proof that shorter terms cause faster payment.
- The EU's proposed 30-day Late Payment Regulation and the UK's proposed 60-day cap are proposals, not law, as of the review date.
How we compiled this data
Reviewed on 2026-10-28. We kept only figures we could open on the official or publisher page that day: the text of Directive 2011/7/EU (read from the Internet Archive copy of EUR-Lex, capture 20251213234835), the European Parliament's Legislative Train page on the late payments file, the Department for Business and Trade's 2025 payment practices statistics (published 14 July 2026), the Small Business Commissioner's Fair Payment Code criteria and 24 March 2026 announcement, the US Treasury Fiscal Service Prompt Payment discounts and interest rate pages and Intuit QuickBooks' 2026 late payments report. We removed a 2025 Atradius figure, an SBA link that did not state the late-fee claim attributed to it, a 'most states enforce 1.5% a month' claim and a Prompt Payment Code row, replaced by the current Fair Payment Code criteria. On 2026-10-28 we moved the UK large-business time-to-pay figures (overall and by sector) to the invoice payment time statistics page, which covers how long invoices take to be paid, and kept the share of invoices paid late, which measures whether agreed terms are met.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in 2026-10-28, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
Is there a legal maximum for payment terms?
In the EU, yes: Directive 2011/7/EU limits B2B terms to 60 calendar days unless expressly agreed and not grossly unfair, and public authorities to 30 days. The UK has proposed a 60-day cap for big companies paying smaller suppliers. The US has no general cap for private contracts, though federal agencies generally pay within 30 days of receiving a proper invoice.
What happens if a contract does not set payment terms?
Under the EU directive, late-payment interest becomes due 30 calendar days after the debtor receives the invoice. For US federal agencies, payment is generally due within 30 days of receiving a proper invoice.
How often do large businesses pay outside agreed terms?
UK large businesses paid 15% of invoices late in 2025, or 14% by value, down from 25% in 2018. Manufacturers had the highest late share at 21%. For how many days invoices take to be paid, see the invoice payment time statistics page.
Do shorter payment terms reduce overdue invoices?
They are associated with fewer. In QuickBooks' 2026 survey, 55% of US small businesses on net-30 terms had overdue invoices, against 26% on immediate terms. The survey shows a link, not cause and effect.
Will the EU cut payment terms to 30 days?
The Commission proposed a 30-day maximum in 2023, but the European Parliament's tracker lists the file as blocked in the Council as of September 2026. The 2011 directive, with its 60-day B2B default, still applies.
Put these figures to use
- Payments hub: Choosing payment terms, scheduling reminders and working out late fees, with worked examples.
- Discount calculator: Includes the annualised cost of early-payment terms such as 2/10 net 30.
- B2B discount strategies: When an early-payment discount such as 2/10 net 30 is worth offering, with worked numbers.
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