FAQ
Who can remove late payments from a credit report?
In the UK, only the original lender or service provider who reported the late payment can request its removal from your credit file. Credit reference agencies like Experian, Equifax or TransUnion cannot delete overdue payments unless instructed by the creditor or proven to be incorrect. If the overdue payment was reported in error, you can raise a formal dispute to have it removed.
When are late payments reported in the UK?
Most lenders report late payments after 30 days past the due date. Anything less than 30 days late is often classed as a missed or delayed payment internally, but not formally reported. However, utility providers and telecoms may report sooner depending on their terms.
What are considered late payments?
A late payment occurs when a bill, invoice or credit agreement isn’t paid by the agreed due date. In a business context, overdue payments usually refer to supplier invoices not settled within contract terms. Under the UK’s new late payment law, any payment beyond 60 days (reducing to 45 days) will be legally classed as late.
How do late payments get reported?
For individuals, late payments are sent by lenders to credit reference agencies. For businesses, overdue payments may now be published through government reporting schemes, such as payment practice reports or Fair Payment Code rankings, where slow-paying organisations may be listed publicly.
Are late payments always reported?
No. Not all late payments are reported, especially if resolved quickly. Many suppliers or creditors allow a grace period or may choose to keep small delays off the record to preserve relationships. However, under the new late payment law, larger UK businesses will be legally required to disclose payment performance, meaning late invoice payment patterns will become more visible.
Do late payments affect business credit scores?
Yes. Late payments can negatively impact a company’s credit rating, especially when reported by suppliers, lenders or utility providers. Credit reference agencies assess payment reliability, and frequent overdue payments may cause reduced credit limits, higher borrowing costs or refusal of supplier contracts. Under the new late payment law, payment data may also be made public, increasing reputational risk.
Can invoice disputes stop late payment reporting?
Yes — but only if the dispute is officially raised and documented within the agreed timeframe. Under the UK’s upcoming late payment rules, businesses will have 30 days to dispute an invoice. A valid dispute pauses payment obligations and prevents it from being classed as a late invoice payment. However, informal or undocumented disputes won’t protect you, so it’s essential to have a clear dispute resolution process in place.
How can companies avoid being flagged for late payments?
The most effective way is to improve internal approval speed and automate invoice processing. Companies should:
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Shorten approval chains to prevent bottlenecks
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Use invoice automation software to track due dates and schedule payments on time
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Log disputes quickly and transparently to avoid misclassification as non-payment
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Align contracts with the new late payment law, reducing terms to 60 days or less
Businesses that consistently pay suppliers within agreed terms or sooner will qualify for Gold status under the Fair Payment Code, strengthening their reputation and supplier relationships.
Don’t wait for fines to land. Audit your late payment risk today.
Talk to us about automating your invoice process before the new late payment law turns delays into legal liability.