Studies reveal that late payments are costing the UK economy around £11 billion every year and close 38 UK businesses daily, with SMEs bearing the heaviest burden. (Source: Department for Business and Trade)
The government want to put a stop to this problem by making prompt payments a legal expectation, changing how UK businesses handle invoices.
The Department for Business and Trade’s consultation Late payments: tackling poor payment practices sets out a package of proposed legislative changes aimed at reducing late and long payment terms, speeding up dispute resolution, and increasing penalties for poor payment behaviour. (Source: Gov.UK)
*Key proposals include:
These changes are designed to reduce cash flow problems for SMEs and help businesses get paid faster and more reliably.
To stay ahead, sorting your internal invoicing is the first step. This is where Lovey steps in.
We want to make your billing process smooth and professional, which is why we’ve created a free invoice template to help you get ready.
A great invoice should be:
🔗 Download our free template here so that your business is one step ahead as new legislation approaches. 💜
If late payments are tightening your cash flow or slowing down growth, Lovey can help. You can explore fast, flexible business loans and get a quote in minutes, with funding available from as little as 4 hours.
Ideal for SMEs that need quick working capital, extra breathing room, or support while the new payment legislation rolls out.
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* The government has updated this consultation in January 2026 and is expected to publish its official response and next steps in early 2026, with legislation to follow once Parliamentary time is available.
