Choose your country

Or view all businesses for sale


Hero Image 1

It’s payback time

What to do when your invoices aren’t being paid.

Fifty thousand.

That’s the number of small businesses in the UK that close every year due to late payments, according to the Federation of Small Businesses (FSB) in 2016.

Given that small businesses account for two-thirds of the UK’s private sector employment, and over 50% of the nation’s business turnover, it’s clear that this is a serious issue requiring urgent attention. In fact, over £23.4 billion is currently owed in outstanding invoices to small businesses!

So, if you are suffering from late payments, where can you look for help? Especially in an economic environment of a post-pandemic world.

In 2016, the government set up the post of Small Business Commissioner (SBC) – currently held by Liz Barclay – to challenge and ultimately change the pervasive culture of late payments and unfavourable payment practices.

The SBC has various powers, including:

· Ordering payments

· Levying fines

· Opening investigations based on third-party information.

The SBC is not the only lifeline available to you. Earlier this year, it was announced in the Budget that the government would be implementing additional policies and schemes to help small businesses in a post-COVID future.

For accommodation, hospitality, personal care and gym businesses, one can look to a pool of £5 billion in Restart Grants (RG). Each RG consists of a one-off payment of up to £18,000.

There is also the Help to Grow scheme that offers up to 130,000 businesses across the UK digital and management boosts.

Another approach for you to consider is the Recovery Loan Scheme (RLS). Businesses can apply for loans of between £25,001-£10 million, as well as asset and invoice financing of £1,000-£10 million to help businesses (small and large) along the rocky roads of recovery.

When you’re owed money from others who won’t pay when they say they will, the consequences for your business can be serious, especially when you have payments of your own to make, such as salaries.

Before you turn to private loan companies, it might be worth considering the SBC or some of the other options outlined above.

It’s time to get what you’re owed.

Everyone has had to struggle and make sacrifices during these months of lockdowns and empty high streets. There are lifelines out there that can and should help you both survive and flourish, as well as change the business landscape of Britain for the better.

Sasha Roberts

About the author

Sasha Roberts is a copywriter for Dynamis, writing for their Franchises & Businesses For Sale section.