Small business commissioner Liz Barclay said that businesses must pay invoices quickly, adding that it could be the difference between life and death for many small businesses.

The Federation of Small Businesses (FSB) warned at the beginning of the year that around 400,000 small businesses could collapse due to late payments, a ‘conservative estimate’ according to Barclay.

In March, over £23.4bn was owed in outstanding invoices to UK businesses, with some taking several months before paying their suppliers.

These late payments cause severe damage to small businesses, affecting their income and investments, as well as leading to job losses and business closures.