London imported £84 billion worth of goods in the year to March 2026. But with import costs on the up, businesses are having to find more money to bring those goods into the country, often months before they can sell them.
Figures from the Office for National Statistics show that 44% of UK importing businesses with at least 10 employees reported higher import costs in March 2026 compared with a year earlier. That’s the highest proportion since June 2023.
For London’s importers, wholesalers and distributors, higher costs are only part of the problem. Many also face a long wait between paying suppliers and receiving money from customers. That gap can create a real cashflow problem.
London businesses have billions tied up in international trade
According to government trade figures, London accounted for 13.7% of the UK’s goods imports in the year to March 2026, second only to the South East.
The ports serving the region are busy, too. London Gateway handled more than three million standard twenty-foot container units in 2025, up more than 52% on the previous year.
For businesses buying from manufacturers overseas, the wait for payment can stretch into months.
Some factories, especially in Asia, ask for the full balance to be paid before goods are shipped. The shipment itself can then take 30 to 45 days to reach the UK, depending on where it’s coming from.
Once the goods arrive, the importer may be supplying retailers or wholesalers who expect another 60 to 90 days to settle their invoices.
That can leave a business waiting around three to four months, sometimes longer, between paying its supplier and receiving money from its customers.
Take a London distributor buying £500,000 worth of stock. That money could be tied up for months, even if the distributor has already confirmed buyers. And while it’s waiting to be paid, it may need to find another £500,000 for the next shipment.
Declan Burton-Clark, Director & Trade Finance Specialist at Plutus Business Finance, which arranges trade and supplier finance for UK businesses, says the timing of these payments can be a problem even for profitable companies.
“An importer can have all their products on pre-order ready to be sold, and still struggle to fund the next shipment. The supplier wants paying now, but the money from the last order might not come in for another two months.
“That becomes a bigger issue as businesses grow. They might be buying twice as much stock as they were a year ago, but that also means finding twice as much money to cover the product upfront.”
Rising costs are making it harder to plan ahead
The latest figures show that many London businesses are already feeling the pressure.
The London Chamber of Commerce and Industry’s Q3 2026 survey found that 31% of London businesses reported worsening cash flow, compared with just 12% reporting an improvement.
More than half also reported higher fuel or energy costs. For importers, changes in currency exchange fees, shipping delays and higher freight bills can make it difficult to know exactly what an order will cost by the time it reaches the UK.
Retailers also expect stock to be ready well before busy trading periods. That means importers may be paying for next season’s items while still waiting for customers to settle invoices from the last one.
And as orders get bigger, so does the amount of money sitting in stock that hasn’t yet been sold or paid for.
Businesses are looking beyond traditional overdrafts
Many importers already have an overdraft or other borrowing arrangement with their bank. But those arrangements don’t always match the way international trade works.
A business might need £500,000 to pay for one shipment, then need much less funding once customers have paid. A few months later, it could need another big amount for the next order.
Burton-Clark says this is where specialist trade finance can be useful.
“An overdraft can work well for a lot of business costs, but it isn’t always suited to paying for big shipments multiple times a year.
“With trade or supplier finance, the funding can be arranged around the order itself. In some cases, the finance provider pays the overseas supplier directly, and the business repays the facility later. It means they don’t have to use all their available cash every time they place an order.”
For London businesses buying stock overseas, the next few months will bring more decisions about how far ahead to order and how much money to commit.
And with import costs rising, the question isn’t always whether there’s enough demand for the goods, it’s whether businesses can afford to pay for them before their customers do.
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