Let’s be honest – late payments have been a quiet curse for SMEs for far too long. But change could finally be on the way.
The government has unveiled a raft of proposals to clamp down on late payments – marking what could be a real turning point for small and medium-sized businesses. Especially those outside the London bubble, where late payments aren’t just annoying – they’re often business-critical.
What’s changing and why it matters
So what’s in the proposals?
- Stricter payment terms – 60 days across the board, reducing to 45 in some cases.
- Real enforcement teeth – including penalties for serial offenders.
- More power for the Small Business Commissioner – the watchdog gets sharper claws.
- Greater transparency – firms may be compelled to publish payment practices.
- Interest charges – late means late, and that means paying for the delay.
For businesses across the North East, where working capital is often tight and growth depends on timely settlements, this could finally rebalance the scales. Especially for the firms supplying larger customers, where it can be a case of “take it or leave it” when it comes to waiting for money.
However, even the best-written rules won’t stop occasional delays, disputes or red tape from slowing down payment cycles. That’s why the most resilient businesses don’t just hope to get paid on time – they plan for when they don’t.
Flexible working capital solutions, like invoice finance, can bridge the gap between delivering the work and receiving the reward. By unlocking the value tied up in your own sales ledger, you can keep hiring, growing and investing regardless of who’s sitting on your money.
Let’s help the North East lead the way – not just in compliance, but in culture. A region where paying fairly and trading responsibly isn’t just expected – it’s business as usual.
If you’d like to talk about finance options that support your business through late payment delays, we’re just at the end of the phone – 0191 211 1471.