1. Report Overview
The Federation of Small Businesses (FSB) has published its latest report highlighting the enduring impact of late payments on small and medium-sized enterprises (SMEs) across the UK. According to the findings, over 50% of SMEs are still struggling with delayed payments from customers — an issue that continues to threaten their cash flow, investment plans and even survival.
📄 Read the full report here (FSB, 2025)
2. Key findings from the FSB report
- A majority of small firms (54%) report being paid late in the past three months.
- One in five say the problem has worsened since the end of 2024.
- Businesses in construction, professional services and retail are among the hardest hit.
- Cash flow pressure is cited as the biggest challenge linked to late payment, alongside reduced headroom for growth.
The FSB is calling for stronger enforcement of the Prompt Payment Code and further government intervention to protect SMEs from damaging payment delays.
3. How late payment impacts SMEs
Late payment isn’t just a nuisance — it can quickly spiral into a business-critical issue. SMEs typically lack the financial buffer larger corporates rely on, so delayed invoices can lead to:
- the inability to meet payroll or supplier commitments
- postponed investment and hiring decisions
- increased dependence on short-term borrowing or personal finance
- growing insolvency risks in uncertain markets
For owner-managers already under strain, chasing overdue invoices becomes time-consuming and stressful — especially when met with silence or delay tactics.
4. How Francis Wilks & Jones can help
At FWJ, we act for a wide range of businesses and lenders struggling with unpaid invoices and late payment. Our debt recovery lawyers combine commercial experience with legal precision to offer fast, practical, and fully compliant solutions.
We provide expert advice and support in the following areas:
Letter before action
We send strong letters before action to debtors, setting out the legal position and prompting urgent settlement. Often this alone unlocks payment.
County court claims
Where payment is not forthcoming, we swiftly issue proceedings and manage the claim through to judgment.
High court enforcement
If necessary, we escalate collection efforts through high court enforcement officers to recover what is owed.
Statutory demands
For undisputed debts over £750, we can serve a statutory demand as a powerful pre-insolvency warning.
Winding up petitions
We advise on and issue winding up petitions against corporate debtors where appropriate — a particularly effective tool for larger claims.
Freezing injunctions and asset recovery
In high-risk situations, we can secure assets early in the process through urgent court orders.
Director guarantees and personal recovery
We enforce personal guarantees where directors are individually liable — a common strategy in finance or trade credit disputes.
Cross-border debt collection
Our network of trusted international lawyers enables us to recover debts across jurisdictions with confidence.
Enforcement of foreign judgments
We help businesses enforce overseas judgments in England and Wales under the correct legal procedure.
Interest and compensation claims
We calculate and add late payment interest and statutory compensation under the Late Payment of Commercial Debts legislation, increasing the total recovery.
Volume-based debt recovery
For businesses dealing with large volumes of debtors, we offer bulk recovery services with integrated systems, legal compliance and real-time reporting.
Whatever your situation, FWJ’s friendly, commercial and proactive lawyers are here to support you. We tailor our advice to suit the size and nature of your business — from SMEs to lenders and corporates — always focused on protecting your cash flow and reputation.
