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Small Business Commissioner

FSB Warns More than 400,000 Small Businesses Threatened by Late Payment

January 2022


More than 400,000 small businesses may be forced out of business by a late payment crisis, according to research by the Federation of Small Businesses. The trade association has called for urgent government action to improve the way firms are paid.

The latest quarterly Small Business Index (SBI) surveys 1,200 business owners and found that nearly one in three (30%) has seen the late payment of invoices increase over the last three months. As a result, close to one in ten (8%) business owners say that late payment is now threatening the continuing viability of their business. With an estimated 5.5 million small business in the UK the new FSB study suggests that 440,000 firms could be forced to close this year due to late payment alone.


FSB National Chairman Mike Cherry said:

" Late Payment was destroying thousands of small businesses even before the pandemic hit – the pandemic has made matters worse. In the past, the Government has rightly identified greater Board accountability as key to spurring change in this area, but delivery has been slow. We responded to its consultation on extending the Small Business Commissioner’s powers more than a year ago, but have yet to see a response. "


Samantha White, CEO of My Credit Controllers said:

"If your business has late payments on its ledger you should take action to get them paid immediately, in case they turn into bad debts from failing businesses. My Credit Controllers was founded to help businesses struggling to get paid by customers on time, get in touch and see what we can do for you. "


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