There’s a quiet crisis unfolding in small businesses across the UK, not because orders have dried up or ambition is in short supply, but because money that’s owed simply isn’t arriving on time.
According to a new report from the Federation of Small Businesses (FSB) and GoCardless in March 2025, 45% of SMEs say late payments are now more frequent than they were a year ago, and nearly 1 in 4 report being paid over 60 days late. Almost half of all small businesses are watching their cash flow worsen, not because of poor sales or bad planning, but because they’re being kept waiting. It’s not just frustrating – it’s completely destabilising.
Late payments aren’t a new problem, but they’re becoming more entrenched. Big businesses, who should know better, are increasingly using delayed payment as a form of free credit. It gives them breathing space but pushes suppliers closer to the edge. And for SMEs already stretched by higher interest rates, inflation and rising costs, that’s a dangerous place to be.
If you run a business – particularly in finance or accountancy – you’ll have seen the damage this causes. A business delivers a product or service, invoices on time, but still ends up chasing payment 60, 90 or even 120 days later. Meanwhile, their own suppliers, payroll and tax deadlines don’t shift. That squeeze on working capital disrupts not only cash flow, but confidence. It puts growth plans on hold, and increases the use of overdrafts. In some cases, it creates a downward spiral that’s hard to escape.
In the FSB survey, a third of SMEs said they now write off up to ten payments a year because chasing them takes too much time or money. That’s not a minor admin issue, that’s revenue loss. More than a quarter also said they’d had to resort to short-term finance just to stay afloat. We hear these stories all the time – where good, viable businesses are forced into reactive firefighting because someone else didn’t keep their end of the deal.
Most of these businesses aren’t struggling because they’re badly run, they’re doing everything right by issuing clear terms, invoicing promptly, even offering early settlement discounts in some cases. But when you’re reliant on a handful of large customers, pressing too hard for payment can risk the relationship. So, you wait, and hope. And when that payment doesn’t land, the pressure builds.
Why access to flexible finance and real understanding matters now more than ever
In this environment, access to the right finance is essential. At Able, we’re not applying a sticking plaster, but here to find the right solution that works for your business and your circumstances.
Often, the best route is invoice finance – this turns unpaid invoices into fast working capital, so you’re not left waiting on late payers to move your business forward. For others, it might be revolving credit, short-term loans, VAT funding or even stock finance. What matters is tailoring the solution to fit, not trying to squeeze your business into an off-the-shelf product.
We’re not tied to one lender or one type of product – we look at the full picture – your sector, your customers, your cash flow patterns, and we find the finance that fits. We know how urgent these situations can be, and we act quickly. Often, we’ve helped businesses access the cash they need in days, not weeks – sometimes just in time to meet a payroll or settle an urgent supplier bill.
It brings about stability and control and gives business owners room to breathe again and get back to what they do best – running their business, not chasing payments or managing a daily cash flow crisis.
We also work closely with accountants to support their clients, offering commercial finance as a strategic lever, not a last resort. Together, we provide a full financial triage service, particularly when clients are in distress. We know that funding is only part of the equation and that solid financial reporting, better forecasting and sound advice are just as important.
Longer term, we know that systemic change is needed – the government has committed to strengthening the Payment Practices and Performance Reporting regime, and reforms to audit committee oversight may help shift behaviours. But legislation takes time. In the meantime, SMEs need fast, practical solutions that keep them moving, and partners who genuinely understand the realities they’re facing.
So if late payments are affecting your business, or your clients’, don’t wait for change to come from the top. Let’s talk about what you can do right now to regain control, protect your cash flow and move forward with confidence.
Get in touch.
