Fran Ellington
Withholding Payment Isn’t a Strategy. It’s a Governance Failure.
Let’s be direct.
Some large corporates are receiving services in good faith from SME suppliers — and then simply deciding not to pay. Others are routinely stretching payment terms to 90 days or beyond, treating small businesses as an interest-free credit facility.
This is not a grey area. It is poor stakeholder governance. And it has consequences.
Emma Jones, the Small Business Commissioner, reported this month that her office has already recovered more than £1.4 million in unpaid invoices this financial year alone and over 500 organisations are now signed up to the Fair Payment Code, including a growing number of large corporates showing they take supply chain payment seriously.
Emma’s words say it all: “Imagine a world where as a founder you don’t have to spend any time chasing late payment. What a wonderful world that would be.”
At Triple Bottom Line Accounting we’re proud to be a Gold Fair Payment Code awardee— because we believe good governance starts with paying people on time. We are also a Certified B Corp company with a sustainable purchasing policy.
Prompt payment won’t stay voluntary for long. Lat year the UK Government consulted on legislation to outlaw 90-day payment terms. The direction of travel is clear.
Good governance and stakeholder governance are not just about ESG reporting frameworks, or long-term strategy documents.
They are about how you treat the people and businesses in your supply chain, about how you treat people generally.
For SMEs, delayed or withheld payments are not administrative irritations. They are:
- Cashflow risks
- Operational risks
- Strategic risks
- Sustainability risks — and increasingly, mental health and wellbeing risks too
The Small Business Commissioner’s office this month published resources specifically supporting small business owners whose mental health has been affected by late payment. That should give every corporate finance director pause for thought.
When payment governance is weak, even strong commercial relationships deteriorate — and reputations follow.
My advice to fellow SME suppliers navigating this:
- Document everything.
- Escalate calmly and factually.
- Know your rights — and use them.
- The Small Business Commissioner’s office is there to help.
Good governance protects both parties. It reduces friction, preserves reputation, and underpins sustainable, ethical business growth.
The question for every large corporate is simple: what does your payment behaviour say about your governance?
Share this article