UK Export Finance hit by almost £6.5m in late payments amid Flexible Finance loan rollout- Industry response
UK Export Finance, the UK government’s official export credit agency, has recorded more than £6.5m in invoices paid late over the past three years according to FOI data.
The news comes amid the roll-out of Flexible Finance, a new pilot project that gives select buyers in fast-growing economies like Brazil access to loans on more flexible terms, encouraging global governments to buy British goods.
The pilot project guarantees up to £5bn in total, which will cover up to 90% of commercial loans for select overseas buyers.
Data obtained via a Freedom of Information request and analysed by the Parliament Street think tank revealed that, from May 2023 to April 2026, UK Export Finance recorded 279 invoices worth £6,475,273.52 paid late.
In 2023, the largest volume of invoices failed to be paid on time, totalling £3,502,955.90. This was followed by 75 invoices with £936,631.92 in 2024 and 74 invoices totalling £2,035,685.70 in 2025.
Through Flexible Finance, British businesses will have more opportunities to ramp up their exports overseas and bring jobs and growth under the new plans.
Kenny MacAulay, CEO of accountancy software firm Acting Office, commented: “Government departments being hit by late payments is a reminder that no business or operation is immune from cashflow risk. While larger organisations can absorb the hit, for smaller businesses that operate on tight margins, it can only take one late payment to be make-or-break.”
“This hit on Export Finance points to a wider problem for exporters which the Flexible Finance scheme will aim to solve, but more flexible terms for buyers can also mean longer payment cycles for the businesses which supply them, so exporters need to go in with their eyes open.”
“Invoices and payment data often sit in a jumble of inboxes and spreadsheets, which makes it easy for a payment to be missed. Before taking on new export deals, accounting and finance teams need an automated invoicing and reminders process that consolidates data in one place, so they can catch issues before they turn into late payments.”
Late payments hitting UK Export Finance is the most recent government department to be hit after the HM Treasury was previously hit with £62m over the past three years according to FOI data.