Small business owners struggling with the stress caused by late or unpaid invoices have been offered new support, as fresh guidance is launched to address the mental health impact of cashflow pressure.
Timed to coincide with Time to Talk Day, the Office of the Small Business Commissioner (OSBC) has published new online guidance designed to help SMEs and freelancers access mental health support while also pointing them towards practical steps to tackle late payment issues.
Late payment is typically framed as a financial problem, but growing evidence suggests it can also take a significant toll on wellbeing. For many business owners, uncertainty over when they will be paid can trigger ongoing anxiety about meeting overheads, paying staff and keeping their business viable.
The new guidance brings together business-focused advice and trusted mental health resources in one place, offering support for owners who may be feeling overwhelmed. It also outlines practical actions SMEs can take when unpaid invoices begin to affect their financial stability and mental health.
The resource has been developed alongside research from Leapers, which examined the link between financial stress and mental health among small business owners and freelancers.
Emma Jones, Small Business Commissioner (pictured), said running a business can be mentally demanding, particularly when payment delays are involved. She said it was vital that freelancers and small business owners know where to turn for support and feel able to ask for help.
“Having founded a small business support platform and network before becoming Small Business Commissioner, I have seen the profound and positive impact when freelancers join a community of like-minded peers,” Jones said. “At the Office of the Small Business Commissioner we are committed to playing our part, with a focus on tackling and challenging late payment, so those going into self-employment can realise the full benefits of working for yourself.”
However, some industry figures have warned that support alone will not solve the underlying problem.
Stephen Carter, Director of Payment Strategy at Ivalua, said the guidance was right to acknowledge the mental health impact of late payment but argued that the government must go further.
“UK SMEs don’t just need mental health support to cope with late payments. They need legislation and enforcement to stop delays in the first place,” he said. “Late payments aren’t an unavoidable fact of life; they are a failure of governance, accountability and outdated payment processes.”
Carter added that delayed payments are often driven by poor internal controls within large organisations, including fragmented procurement and finance systems, manual processes and a lack of visibility over supplier commitments. He warned that the consequences can be severe, with supply chains disrupted and smaller suppliers pushed to the brink.
Research cited by Ivalua suggests more than a third of UK businesses have seen suppliers go out of business due to cost pressures linked to late payment.
Carter urged the government to publish its response to last year’s late payment consultation without further delay, warning that continued inaction risks signalling to larger organisations that poor payment practices will be tolerated, while SMEs are left to absorb the financial and emotional strain.
Read more:
New guidance aims to help small business owners cope with mental strain of late payments