Almost £162 billion of British exports are at heightened risk because UK firms are shipping goods to markets where collecting payment is most difficult, according to new analysis.
Research from Allianz Trade shows that nearly a quarter (24%) of all UK exports are destined for three countries, the United States, China and India, which pose the greatest challenges for debt collection among the UK’s top 20 export markets.
Together, exports to these three destinations account for £162bn ($221bn) worth of goods leaving the UK, exposing exporters to risks ranging from prolonged payment delays and complex legal systems to insolvency-related write-offs where debts become difficult or impossible to recover.
The US alone accounts for 12% of all UK exports and has been assigned a collection complexity score of 56 out of 100, placing it in the “very high” risk category. Allianz Trade said payment collection in the US has become riskier since 2022, as domestic payment culture has grown increasingly uncertain.
The absence of a harmonised framework governing late payments means payment terms are largely contractual, while average Days Sales Outstanding (DSO) remain elevated. These issues are compounded by the country’s fragmented legal system, split across county, state and federal jurisdictions, which can significantly complicate even straightforward debt recovery cases.
China, which represents 10% of UK exports, carries a “severe” collection complexity score of 66, while India, accounting for a further 2%, has a “very high” score of 57. Although Allianz Trade noted that complexity scores in both markets have eased slightly over the past four years, payment delays remain far longer than in the UK.
Average DSO in China stands at 94 days and 75 days in India, compared with 51 days in the UK. Allianz Trade said exporters continue to face opaque legal systems, weak regulation of late payments, lengthy court delays and high legal costs, all of which make enforcing foreign debt rulings difficult.
The findings underline the growing importance of credit risk management for UK exporters, particularly as businesses seek growth in large international markets.
Allianz Trade warned that without robust safeguards — such as trade credit insurance, tighter payment terms or improved due diligence, exporters risk seeing a significant share of overseas revenues tied up in overdue invoices or written off entirely as bad debt.
