£10 million in late payments recovered by SMEs

In a good news story to kick off the start of the year, the Office of the Small Business Commissioner (OSBC) has released details of the funds it has helped SMEs recover from larger practices. 

Waiting for other businesses – whether clients or partners – to pay up can prove crippling for smaller ventures with tighter budgets. As Small Business Commissioner, Emma Jones, wrote in her latest column for us, “…tackling individual late payment issues can feel like a David and Goliath battle.”

However, under the Enterprise Act 2016, the Small Business Commissioner’s office can act for businesses for free. While damaging payment practices remain a significant problem for businesses and the economy overall, this latest statement from the Small Business Commissioner suggests that headway is being made.  

Millions recouped

In a statement, the Commissioner’s office announced that it has got almost £1m back so far this financial year and in December 2025 alone, over £500k was recovered. 

The OSBC has a statutory duty to act and investigate the complaint when it receives an enquiry from an SME fighting to recover a late or overdue payment.

For micro businesses in particular, the time needed to chase payment can be costly to their operations. A “nudge” from the OSBC is often very effective in getting their funds. Since being given the power to act in 2017, it claims to have recuperated £10 million of overdue invoices paid to small businesses. 

How SMEs can get help

As Jones stated: “We can only deliver these numbers if small businesses contact us to raise cases of late payment and we thank every small business owner who has entrusted us to investigate their particular issue.”

Business owners can contact the OSBC through its website. There is then a 15-question form to fill out with details of the complaint. Business owners will then be assigned a team member to handle their query if the office takes on the case. 

The website adds that if the OSBC can’t help, “…we will offer an explanation and recommend any appropriate support or dispute resolution services that might be available.”

The team works to a 40 business day goal for settling disputes, but will let businesses know if they have been unsuccessful beyond this, and will suggest other pathways towards resolution.

A continued battle

The OSBC acknowledges, though, that there are many more businesses in need of help. UK Government research reveals the shocking statistic that 4,000 businesses close each year because of late payments, which is the equivalent of 38 businesses every day. 

It has a huge impact on the country as a whole as late payments cost the UK economy £11 billion per year. 

The Government has now launched a consultation to look at different measures to tackle late payments, and these include “enhanced powers for the Small Business Commissioner”. 

Businesses are encouraged to reach out for help as soon as possible if facing difficult times because of late payments.