The UK’s Commercial Payments Bill would tighten payment requirements for domestic businesses but leave exports and imports outside its coverage, according to Trade Finance Global. The outlet reported that the legislation had completed its passage through the House of Lords and was moving to the Commons, with cross-border payment protections still unresolved.
The proposed rules include a 60-day ceiling on standard business-to-business payment terms, statutory late-payment interest at eight percentage points above the Bank of England base rate, and public reporting requirements for large companies on supplier payments. Trade Finance Global cited government estimates that late payments cost the UK economy £11 billion annually and cause around 14,000 businesses to close each year.
An attempt to extend the legislation to international transactions did not progress. Lord Thomas of Cwmgiedd, a crossbench peer, proposed an amendment during the committee stage, but subsequently withdrew it, the outlet reported. The issue was not revisited at the Lords report stage. Ministers’ rationale for excluding cross-border transactions was that a uniform payment deadline could clash with long shipping journeys, letters of credit and deliveries made in stages, potentially disadvantaging British traders against foreign competitors.
The exclusion comes amid pressure on trading businesses’ working capital. Citing an August 2026 survey by Bibby Financial Services, Trade Finance Global said almost seven in 10 UK trading businesses reported deteriorating cash flow, principally because of shipping and logistics costs, with customer payment delays also contributing. More than a third of overseas partners were seeking payment before shipment, while currency movements had cost affected firms an average of more than £70,000 over the preceding year.
Trade Finance Global argued that international businesses should strengthen their own payment controls rather than expect the domestic reforms to resolve overseas risks. It recommended earlier monitoring of overdue invoices and clearer contractual arrangements covering payment deadlines, settlement currencies and late-payment consequences. The outlet also identified supply chain finance and dynamic discounting as ways to offer suppliers earlier payment after invoice approval, alongside trade credit insurance, export finance guarantees and proactive credit control to help manage exposure.