With late payments remaining one of the biggest challenges that small and medium-sized UK businesses face, newly released figures from the Office of the Small Business Commissioner (OSBC) highlight the steps being taken to tackle the issue.

Under the Enterprise Act 2016, the OSBC can act for free on behalf of SMEs seeking to recover late payments from clients or partners. Since being granted these powers in 2017, the OSBC says it has recovered £10 million in overdue invoices to small businesses. In the current financial year, the OSBC says it has recovered nearly £1 million, with more than £500,000 being recovered in December 2025.

When an SME seeking to recover a late or overdue payment notifies the OSBC, the body has a statutory duty to investigate the complaint. Reportedly, a “nudge” from the OSBC is often sufficient to secure the release of late funds.

According to UK government research, 4,000 UK businesses close every year because of late payments, the equivalent of 38 businesses per day. Furthermore, late payments are estimated to cost the UK economy around £11 billion each year.

A new consultation has been launched by the government with the aim of tackling this problem, with plans under consideration including further enhanced powers for the Small Business Commissioner.

While the OSBC has been effective in securing late payments for SMEs since being granted greater powers in 2017, it has emphasised that it can only act if small businesses make contact to raise instances of overdue payment.

SME owners can contact the OSBC via its website, where they must fill in a 15-question form to detail their complaint. If the office takes on the case, a team member will then be assigned to handle the business owner’s query. When handling a case, the OSBC seeks to settle disputes in 40 business days. If unsuccessful, it will inform business owners and suggest alternative support or dispute resolution services that might be available.

Businesses struggling with late payment issues have been encouraged to reach out to the OSBC for help as soon as possible.