About OSBC

The Office of the Small Business Commissioner (OSBC) is an independent public body established by Government under the Enterprise Act 2016 to tackle overdue payments and unfavourable payment practices in the private sector. 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 raise payment practice standards across the UK.

The OSBC has a statutory duty to review enquiries and investigate formal complaints made by small businesses regarding late and overdue payments, as well as providing advice and support on issues relating to overdue payments and payment practices in the private sector. It undertakes a range of activity to improve outcomes for small businesses and works across Government, and with partners in the private and third sector, to raise awareness of the impact of overdue payments and unfair payment practices.

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. Recent DBT research found that:

15% of surveyed businesses said they have avoided doing business with specific customers based on their payment behaviour.

• Late payments are estimated to cost the UK economy almost £11 billion per year.
• 22% of surveyed businesses said they spent staff time chasing late payments, on average 86 hours per business affected by late payment per year. This equates to 133 million hours of staff time across the economy each year.
• Over 1.5 million businesses, or 28% of businesses, are affected by late payments each year.
• 14,000 businesses close each year as a result of late payments, equivalent to 38 businesses every day.
• Businesses are owed an estimated £26 billion in late payments at any given time, on average £17,000 per business affected by late payment.

“As part of our Plan for Change, I’m determined to make the UK the world’s best place to be an SME, tackling late payments, improving access to finance and getting more small firms exporting around the world – and today’s appointment is a crucial part of that process.”

Emma Jones, Small Business Commissioner