About us

The Office of the Small Business Commissioner (OSBC) is an independent public body established by Government under the Enterprise Act 2016 to tackle late payments and unfair payment practices. It supports small businesses to get paid quickly and on time, influences large businesses to improve payment times to suppliers and works with all business to improve the culture of payment practices across the whole of the UK England, Wales, Scotland and Northern Ireland. 

We have a statutory duty to review complaints by small businesses regarding late payments, as well as provide advice and support on issues relating to late payment and payment practices in the private sector. We undertake a range activity to improve outcomes for small businesses and work across Government, and with partners in the private and third sector, to raise awareness of the impact of late payments and unfair payment practices. 

Raise your complaint with us directly here.

 

The importance of prompt payment practices  

5.5 million micro and small businesses operated in the UK in 2023 sustaining 13 million jobs. That’s almost half of private sector employment. They’re responsible for a third of all business turnover at £1.6 trillion. They’re crucial to the economy, wider society and local communities and to addressing the UK’s productivity and growth challenges.  

They range from sole traders or freelance consultants up to the manufacturer employing 49 people providing critical components to a wider supply chain. UK small businesses operate in every region and sector and are some of the most talented, innovative and creative in the world. 

Healthy cash flow is critical for small business survival and growth. For a business to conduct its daily activities it needs cash to buy stock and inventory, pay the bills and staff, and invest in research or new technology. Late and long payment times disrupt the cash flow cycle and can prevent a business from paying its bills, eventually leading to business failure. 15% of SMEs cited cash flow and late payments as an obstacle to running their businesses in 2023. 

Data shows that in the UK small businesses are owed on average an estimated £22,000 in late payments accounting for around 18% of invoices, and the average time to pay was 32 days in 2023. Research estimates SMEs spend 56.4m staff hours per year chasing late payments at a cost of £6.3bn per year and the cost of additional finance to cover cash flow shortfalls as a result of late payment SMEs is £684m per year.