The latest exclusive article for SMEWeb from Small Business Commissioner Emma Jones CBE who runs the independent public body that tackles late payments and unfair payment practices.
Running a small business can be so rewarding. When I founded my previous business, it expressed my passion for supporting founders to find community, get access to finance and adopt digital tools to make their lives easier.
But leading a small business can come with a lot of stress. Pressures around day-to-day responsibilities and cashflow come with the job, but when invoices aren’t paid on time, that pressure can grow. When late payments affect your cashflow, it doesn’t just impact your business. There can be a hidden cost to your mental health and wellbeing.
In their annual research, Leapers’ 2025 Mental Health in freelancing report found that financial uncertainty was one of the biggest drivers of poorer mental health in 2025, as well as poor client behaviours such as ghosting or late payments. 67.5% of self-employed people experienced issues with late payments, of which 81.2% felt like it added stress to their lives.
The proposed reforms in the Commercial Payments Bill, such as capping payment terms at 60 days, mandating interest on late payments, and stronger powers for the Small Business Commissioner, are an important step to tackling this issue, creating a fair payment culture and providing relief for founders.
We at the OSBC have also developed some tips and resources to:
- help you identify when it might be time to seek support,
- what you can do if late payments are affecting your mental health,
- and where you can go for support.
You can also access our free enquiries service if you are dealing with an issue of late payment and explore all our guidance that covers issues such as implementing AI to speed up payments, how to establish good payment terms, and how to invoice effectively.
Other content by Emma Jones:
- Chasing late payments? How the Office of the Small Business Commissioner can help
- Focus on the Fair Payment Code and celebrating firms that pay on time
- Top tips to contract well and get paid on time
- Three things to expect from the Office of the Small Business Commissioner in 2026
- Not getting paid on time? Call the Late Payments Line
- SME Safaris make payment and policy connections
- Time to pay – new rules to tackle late payment
- Accountants and bookkeepers can help with prompt payment – here’s where to find them
- What is the regulation holding you back?
- How small business owners can make the most of August
- How to ensure the prompt payment of an invoice
