For independent firms across Essex, Cambridgeshire, and the wider East Anglian region, maintaining reliable cash flow is not just an accounting priority—it is the very lifeblood of daily operations. Whether you are funding inventory, paying staff, or investing in local growth, standing on solid financial ground requires predictable incoming revenue.
Yet, for decades, small and medium-sized enterprises (SMEs) have carried the heavy burden of late payments, often forced to act as unintended bankers for larger corporate clients. With overdue invoices draining capital and stifling local enterprise, the UK Government’s Commercial Payments Bill represents a landmark legal shift designed to rebalance the playing field.
Key Reforms: What the Legislation Changes
The Commercial Payments Bill establishes the most comprehensive payment protection framework in recent history, introducing strict statutory boundaries to eliminate chronic payment delays:
| Commercial Payments Bill Key Pillars | |
|---|---|
| Mandatory Payment Cap | Maximum 60-day terms for commercial contracts (voiding longer terms). |
| Mandatory Statutory Interest | Non-waivable interest set at 8% above the Bank of England base rate. |
| Strengthened Commissioner Powers | Direct investigatory powers, binding dispute adjudication, and fines. |
1. The 60-Day Statutory Cap
Large corporations will no longer be permitted to impose 90-day or 120-day settlement terms on smaller suppliers. The bill mandates a strict 60-day maximum payment period across standard commercial contracts, rendering any longer contractual clauses legally void.
2. Mandatory Statutory Interest
To prevent larger debtors from quietly ignoring payment terms, the legislation embeds a non-waivable right to claim statutory interest—set at 8% above the Bank of England base rate—on all overdue invoices. Building this right directly into law removes the awkwardness small business owners historically felt when pursuing late fees.
3. Sweeping Enforcement Powers for the Small Business Commissioner
The Office of the Small Business Commissioner gains significant new teeth. Beyond offering binding dispute adjudication without the need for court proceedings, the Commissioner can now investigate persistent offenders and impose substantial financial penalties on companies that fail to pay on time.
Reclaiming Control of Your Working Capital
While tighter government legislation tackles late B2B invoice payments at a regulatory level, local merchants and service providers must also optimize their day-to-day transaction processing to maintain maximum liquidity.
In traditional card processing and merchant services, businesses are often forced to wait 3 to 5 working days for card transactions to actually hit their bank account. Over a month or quarter, this lag traps thousands of pounds of working capital in transit.
TRADITIONAL CLEARING (3–5 DAYS)
EABS NEXT-DAY SETTLEMENT FLOW
Eliminate the Lag with EABS
At East Anglian Business Solutions (EABS), we believe independent businesses shouldn't have to wait to access their own hard-earned revenue.
By combining disciplined invoice management with our next-day card settlement solutions, you eliminate the traditional multi-day clearing lag entirely. Incoming card payments are processed and transferred into your account by the very next business day, giving you immediate access to fluid working capital.
Operating locally out of Saffron Walden, our team conducts independent audits of your transaction structures and merchant rates. We transition your business to transparent, flexible, rolling monthly contracts with zero hidden fees—ensuring your payment infrastructure works just as hard for your bottom line as you do.
Tired of waiting days for your card payments to clear? Contact Carl and the EABS team today for an independent payment audit and discover how next-day settlements can transform your business cash flow.
Speak directly with an East Anglian Business Solutions specialist:
Cambridge: 01223 967 201
Saffron Walden: 01799 739 040
