How UK SMEs can stop chasing invoices in 2026

In 2026, late payments remain one of the biggest pressures facing small and medium-sized enterprises (SMEs), forcing owners to spend valuable time following up invoices instead of building their business.

According to the Office of the Small Business Commissioner (OSBC), 2026 is shaping up as “a big year for prompt payment”, with new initiatives aimed squarely at getting money moving faster into small businesses’ hands, including expanded digital tooling, strengthened payment pledges from major platforms, and legislative responses to payment culture reforms.

This matters because the scale of the late payment problem in the UK remains stark. Analysis of millions of invoices reveals that nearly two-thirds of invoices sent by small businesses were paid late, many by 60 days or more, with a substantial portion of owners forced to write off unpaid amounts entirely.

Meanwhile, evidence presented to Parliament shows that small businesses are owed £112 billion in unpaid invoices, a level that is contributing to closures of around 38 SMEs every day.

But it doesn’t have to be this way. Here’s how forward-thinking UK SMEs are changing the narrative:

Constant cash flow anxiety how to stop chasing invoices

1. Turn terms into strategy

Don’t let payment terms sit in the background. Setting clear, straightforward terms and communicating them early and often reduces ambiguity and sets expectations before the first pound changes hands.

2. Automate reminders and reconciliation

Cloud accounting tools aren’t just modern luxury, they automate follow-ups, trigger alerts before deadlines, and make it easier to spot bottlenecks. Embedding automated dunning sequences significantly cuts admin time and tension between teams and clients.

3. Segment customers by risk

Not all clients pay the same. Use data, even simple ageing reports, to tailor payment terms. Trusted customers might earn more flexible conditions, while new or slow-paying accounts could be moved to tighter, incentivised structures.

4. Explore financing support

Solutions such as invoice discounting, advance funding, or invoice finance partnerships help convert receivables into usable capital, stabilising cash flow without relying on delayed settlements.

Building a stronger accounts receivable process

If chasing unpaid invoices is draining your time and energy, consider operational support that meets you where you are. Sanay specialises in helping UK SMEs optimise accounts receivable (AR) processes and strengthen financial operations, reducing manual chasing so you can focus on scaling your business.