24 July opens DBT payment consultation, UK creditors can shape rules on late invoices

From today, finance teams, advisers and trade bodies have a live chance to influence the next round of payment law. The DBT consultation opens today under the title “Late payments: tackling poor payment practices.” It is seeking views on “late, long and disputed business-to-business payments” and on “retention clauses in construction contracts.”

What the source says This consultation was published on 24 July and is open now, which is the practical point. The scope reaches beyond late payment into long terms, disputed invoices and construction retentions. That gives suppliers, advisers and trade bodies a route to put real contract problems in front of ministers before draft law hardens. Retentions make this especially relevant for construction. They can delay cash for months even where labour and materials have already been funded by the supply chain. For smaller firms, that gap often lands before any formal credit event appears.

What RecoupIQ’s data shows

The signal to watch Our capital-bleed signal often worsens before a business starts stretching suppliers through longer terms or disputed invoices. We also see filing-timeliness slippage and rising creditor pressure appear together when payment discipline is weakening. In construction chains, retentions can deepen that strain because cash stays trapped even where work is largely complete.

Keep watch on your customers and suppliers. recoup-iq.tech/pricing (Pro £149/mo) That combination matters because most credit losses build through weak payment habits before formal distress. By the time a court step or insolvency event lands, the collection window is usually tighter. For creditors, earlier friction signals are often the usable warning.

What this means for UK creditors For UK creditors, this is not a Westminster side issue. It is a chance to argue for rules that reflect how cash actually gets delayed, by long terms, disputes and retained sums. If your business keeps carrying those risks, this consultation is one of the few points where evidence can still change the wording. Review your customer terms, dispute logs and retention clauses now, then feed in evidence while the consultation is live. Credit teams should also tighten reviews on accounts showing slower payment behaviour, because weak practice usually spreads before it becomes obvious. The firms most exposed are those granting long terms without fresh credit checks or clear dispute escalation. Get the data lens on any UK Ltd, £167 Forensic Report at recoup-iq.tech/forensic-report.

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