Late Payment Crackdown: Stricter Rules, Bigger Penalties, Faster Recoveries

Recent UK Government reforms have launched the toughest measures on supplier payment delays in a generation. Here’s what that means for you:

  1. A staggering £11 billion annual cost to the UK economy caused by late payments.
  2. 38 small businesses die every single day due in part to unpaid invoices and cashflow stress
  3. The Small Business Commissioner now holds new enforcement powers — from spot checks to multimillion-pound fines for serial offenders
  4. Mandatory maximum payment terms: 60 days down to 45 days in coming months.
  5. Large companies must report supplier payment timelines and face board‑level scrutiny if more than 25% of invoices fall due late

Find the full Government Article Here https://www.gov.uk/government/news/time-to-pay-up-toughest-crackdown-on-late-payments-in-a-generation-unveiled-in-plan-to-back-small-businesses

Why this matters to you….

The late-payment crisis is not an inconvenience—it’s a business killer. With dozens of suppliers closing each day and £11bn lost annually, here’s what small businesses need to know:

  • 2.8 million SMEs face late payments, and many lack the legal support to recover owed sums.
  • Failing to charge statutory interest (Bank of England rate + 8%) and fixed compensation can cost you thousands per invoice

Here’s How Lane & Co Can Help:-

✅ Enforce statutory interest and compensation on overdue invoices.
✅ Leverage the new Small Business Commissioner powers to pressure late-paying clients.
✅ Update your contracts to enforce 45‑day payment terms, aligned with new legislation.
✅ Recover debts swiftly (with fixed-fee packages)  to turn unpaid invoices into working capital.

Protect your bottom line. Secure your future. Grow your business.