UK businesses could release £57.5bn into the wider economy by modernising payment processes, according to new research from Navro, as slow settlement times continue to tie up working capital.

The London-based FinTech, which specialises in global payments infrastructure, estimates that around £575bn in business-to-business invoices was outstanding at any given time during the second quarter of 2026. Drawing on Office for National Statistics data, Navro said this represented 1.9% of UK GDP.

The company believes businesses could free up around 10% of this capital by reducing the two-to-three-day delays associated with payment clearing and lowering the cash reserves held to cover potential delays. Its estimate assumes existing 30-day payment terms remain unchanged.

The findings come ahead of the Chancellor’s Budget on 28 October, with businesses facing pressure from rising costs and an uncertain economic outlook. Navro argues that improving payment infrastructure could provide a route to releasing capital without changing the agreed timeframes for paying invoices.

The £57.5bn estimate is conservative, according to the company. Further savings could be possible by automating manual processes, connecting legacy systems and reducing excess liquidity held as a safeguard against late payments.

Navro estimates that the potential value tied up in payment processing has increased by almost £2bn year on year, compared with the £55.8bn identified in its previous assessment.

Navro operates a payments curation platform that enables multinational businesses to send money internationally through a single API. The system selects payment routes for individual transactions and automates regulatory requirements. Its customers include pension and payroll providers and Employer of Record platforms.

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