24/05/2026
Big news for small business owners, and long overdue. 🙌
If you've ever waited on a payment from a large client while your own bills stack up, you'll know exactly what late payment feels like. It's not just frustrating, it's damaging. The government estimates that late payment contributes to around 38 small business closures every single day.
What's changing?
The Commercial Payments Bill had its first reading in the House of Lords on 19 May 2026. If it passes, it would cap payment terms at 60 days for large firms paying their smaller suppliers, automatically apply 8% interest on overdue invoices without the supplier needing to chase it, and create real consequences for the kind of dragged-out payment behaviour that has cost small businesses billions.
This is being called the largest crackdown on late payments in over 25 years. It's not law yet, but the direction of travel is clear.
What can you do right now?
You don't have to wait for legislation. Review your payment terms and make sure they're clearly stated on every invoice. Set up automated payment reminders so chasing becomes the system's job, not yours. And keep your books up to date so you always know exactly where you stand.
At ASBK, helping clients stay on top of their cash flow is part of what we do every month. If late payments are causing you headaches, or you just want to make sure your invoicing is as watertight as possible, get in touch. 💼
