Late payments and mental health: support for small businesses

Running a small business can be rewarding, but it can also come with a lot of stress. Pressures around day-to-day responsibilities and cashflow come with the job, but when invoices aren’t paid on time, that pressure can grow. When late payments affect your cashflow, it doesn’t just impact your business. It can also impact your mental health and wellbeing.

In their latest research, Leapers’ 2025 Mental Health in freelancing report found that financial uncertainty was one of the biggest drivers of poorer mental health in 2025, as well as poor client behaviours such as ghosting or late payments. 67.5% of self-employed people experienced issues with late payments, of which 81.2% felt like it added stress to their lives.

Below are some tips and resources to help you understand when it might be time to seek support, what you can do if late payments are affecting your mental health, and where you can go for support.

How to know when you need support

Everyone responds to pressure differently. You may want to consider getting support if you notice that you are:

feeling overwhelmed by money worries
feeling isolated, particularly if you run your small business on your own
finding it hard to concentrate or make decisions
putting off invoices, emails, and financial conversations

These experiences are common among small business owners who have had pay disputes, especially during periods of financial uncertainty. Getting support early can make it easier for you to manage your mental health and your business.

What to do if late payments are impacting your mental health

If late or unpaid invoices are making you feel stressed or anxious, taking practical steps may help you feel more in control and ease your anxiety.

At the Office of the Small Business Commissioner, we may be able to help if you are experiencing late payment issues with larger businesses. We can:

explain your rights and options
help you think through how to approach late payment
in some cases, contact the business that owes you money

Visit our enquiries page to raise a dispute or query.

You may also find it helpful to seek advice about the practical and financial aspects of late payment. This could include speaking to your accountant, bank, or financial adviser about managing cashflow, or getting advice from a trade body specific to your sector.

Resources for small businesses

There are also organisations and resources specifically designed to support the mental health and wellbeing of small business owners.

Leapers: Leapers support the mental health of the self-employed and small business owners through research, peer support and practical resources focused on the realities of running a business. This includes a guide on dealing with late payments.
Federation of Small Businesses: The FSB offer advice, support, and resources for small business owners. This includes guidance on wellbeing, financial management and dealing with business pressures.
Mind: Mind have put together a toolkit of resources for small businesses. This includes resources on how to recognise mental health challenges as a small business owner, have conversations about wellbeing, and find appropriate support.

Running a business on your own can feel isolating, especially when you are dealing with challenges like late payment or cashflow pressure.

Connecting with other business owners can make a real difference. Local networking groups, trade associations and business organisations give you the chance to ask questions, share experiences and learn from people who understand the realities of running a business.

These communities are not just useful for advice and practical tips. They can also provide reassurance and support during more difficult periods. Having people around you who understand your situation can help you feel less alone and more confident about the next steps to take.

You might want to look for:

Trade bodies or professional associations in your sector
Online communities for small business owners and the self-employed
Local business meet-up or networking groups

Mental health support services

If you or someone you know are struggling with your mental health, there are several free support services available to help you:

You may find it useful to explore more than one source of support. Different support services offer different types of help, and you can choose what feels most appropriate for you.

Helpful links

“Running a business can be tough at times and it is important that freelancers know about, and feel they can reach out to, the help and support available.”

Emma Jones, Small Business Commissioner