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Failed invoice payments on the rise, warns Atradius

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Mounting economic stress in the retail and hospitality sectors is pushing up claims for late and unpaid invoices, according to the latest research from the UK’s largest trade credit insurer, Atradius.

Data indicates that failed invoice payments are increasing rapidly within the hospitality and retail sectors. Claims against retail stores rose by 33% year-on-year, while hotels experienced a 50% increase in November 2025.  These figures suggest that an escalating number of businesses are delaying payments to suppliers, which may serve as an early indication of cash-flow challenges.

“The rise in claims we saw in November suggests financial pressure was already building in retail and hospitality well before Christmas trading began.  Late payment to suppliers is often one of the earliest indicators of cash-flow stress, particularly in consumer-facing sectors with high fixed costs.  With January typically a slower trading month, these pressures can quickly become more visible – not just for businesses, but for consumers waiting on refunds, bookings or vouchers to be honoured,” warns Ruby Hartery, Risk Analyst, Atradius.  

“In this environment, businesses should be actively reviewing their exposure to non-payment and ensuring they have the right cover in place to protect cash flow and maintain confidence as trading conditions remain volatile.”

Retail sales for December 2025 grew modestly to 3.2% from 1.2% recorded for the same month a year ago, with the uptake driven by a strong performance from non-store retailers (primarily online), particularly online jewellers who reported high demand for precious metals.  Although online retailers performed well recording a 1.8% rise over the month, consumers are becoming more cautious when making purchasing decisions as high living costs and fragile consumer confidence continues to put pressure on household spending.