How Technology Can End the Late Payment Crisis Costing UK Businesses £11 Billion

Late payments have become so common that many businesses simply accept them as part of commercial life. But should they?

In this episode of Tech Talks Daily, I speak with Pat Bermingham, founder and CEO of Adflex, about why late payments continue to cost the UK economy an estimated £11 billion every year, why thousands of businesses fail because of cash flow pressures, and how technology could help change payment behavior rather than simply respond to it.

Pat argues that late payments are rarely an administrative accident. In many industries they have become an informal financing mechanism, allowing larger organizations to protect their own cash flow while placing increasing financial pressure on smaller suppliers. Construction is one example, but the challenge extends across many sectors where long supply chains and uneven bargaining power make delayed payments the norm rather than the exception.

We discuss why new government proposals to strengthen payment regulations represent progress, while also examining why legislation alone cannot solve a structural problem that has developed over decades.

Instead, Pat believes technology can play a much bigger role.

He explains how virtual commercial cards and Straight Through Processing (STP) allow buyers to access extended finance while suppliers receive payment far more quickly, without introducing additional friction into the payment process. Rather than forcing suppliers to accept card payments directly, the technology automates the process behind the scenes while improving reconciliation, increasing visibility and supporting healthier cash flow across the supply chain.

The conversation also explores why many organizations still rely on fragmented payment systems created through years of acquisitions and disconnected technologies. Modernizing payment infrastructure can reduce delays, improve operational efficiency and help businesses build stronger supplier relationships rather than treating late payment as a normal business practice.

Pat also shares how an earlier career as a music producer shaped his thinking about technology. Watching digital innovation transform music production helped him recognize how technology can simplify complex processes while also creating new business models that challenge established industries.

For finance leaders, procurement teams, CIOs and business owners, this episode provides practical insights into improving cash flow, strengthening supplier relationships, modernizing payment processes and preparing for a future where prompt payment becomes both a commercial advantage and an increasing regulatory expectation.

Changing payment legislation is important. Changing payment behavior is what will ultimately strengthen businesses, protect suppliers and create more resilient supply chains.