Outdated expense systems expose financial pressure points for UK workers – and operational gaps for employers

A new Airwallex report – Reimbursement Frustrations, reveals urgent need for finance leaders to modernise reimbursement processes to support staff and safeguard company cash flow.

A new report from global fintech platform Airwallex has highlighted a widespread issue in UK businesses: outdated and inefficient expense reimbursement systems. According to the research, which surveyed 2,000 UK employees, workers are personally covering an average of £4,255 each year in business-related expenses — with nearly half of respondents citing financial difficulty due to delayed reimbursements.

These findings underline the broader operational impact for businesses, pointing to finance processes that are no longer fit for purpose. As companies seek to drive efficiencies and reduce risk, the report suggests a need for more modern, real-time solutions to manage spending and employee reimbursements.

The Real Cost of Legacy Systems

The data reveals that 45% of employees regularly use their own money to fund work expenses, including client entertainment, travel, and subscriptions. In London, this figure rises to 68%, indicating a significant reliance on employee-funded business spending in higher-cost regions.

Despite the prevalence of this practice, traditional reimbursement processes continue to present challenges for finance teams — from delayed approvals and missed policy enforcement, to poor visibility over real-time spend. These inefficiencies increase the likelihood of overspend, fraud risk, and strained employee-employer relationships.

Pressure Across Pay Grades

The financial strain is not limited to lower earners. Employees with salaries over £100,000 report spending up to £20,000 per year on business expenses, with half reporting financial stress caused by repayment delays. Meanwhile, 45% of employees earning under £30,000 report borrowing money from friends or family to cover business costs while waiting to be reimbursed.

The use of credit is also widespread, with 41% of employees relying on personal credit cards to fund work-related purchases. A significant number of respondents have also made work-related decisions based on these pressures, including 12% missing events and 13% of younger employees leaving roles entirely due to the financial burden.

There is also a clear disconnect between expectations and reality: while 39% of employees expect to be reimbursed within one week, only 30% receive payment in that timeframe.

A Case for Process Transformation

The study signals a strong appetite for improved expense systems. More than half of employees believe current solutions are inadequate, and 75% of higher earners specifically highlight a need for better expense software.

To address these challenges, Airwallex offers an integrated payment solution that allows businesses to move away from traditional reimbursement models. The platform enables employers to provide staff with access to funds at the point of purchase, removing the need for personal outlay and reducing administrative workload.

Key Benefits of the Airwallex Approach

Corporate Cards (Virtual & Physical): Allow employees to pay directly with business funds, avoiding personal out-of-pocket costs.

Instant Reimbursements: Speed up repayment processes and reduce financial pressure on staff.

Automated Expense Management: Integrate seamlessly with systems like Xero, QuickBooks, and Netsuite for faster reconciliation and greater accuracy.

Real-Time Controls: Customise limits, monitor spending live, and enforce policy compliance with ease.

Multi-Currency Capabilities: Reduce foreign exchange fees and simplify international expenses for global teams.

By adopting these tools, businesses can improve both financial oversight and employee experience — while supporting more accurate, efficient, and policy-aligned expense management.