What to do when late payment starts doing your head in

Dealing with the issue of late payment can make you feel stuck and put you constantly on edge.

This blog lays out some simple steps you can take right now, and points you to trusted places where you can find practical and emotional support.

Why it hits harder than people admit

When you run a small business, cash isn't just cash. It's rent, childcare, payroll, food – and whether you can sleep at night.

So when an invoice goes overdue, the impact is never "just admin".

The Small Business Commissioner (SBC) has just published new guidance linking late payments to mental health, with practical steps and support routes for small firms.

It has referenced Leapers' 2025 research, which puts numbers on what most founders might already know – that 67.5% of self-employed people had problems with late payment last year. Of those, 81.2% said it added stress to their lives.

Unsurprising really. Late payment creates uncertainty, which is extremely draining. It also changes how you behave.

You start putting off chasing, avoid opening emails, second-guess yourself. You carry it alone because you think you should be able to "handle it".

Signs that late payment is putting you under strain

All business founders respond differently to pressure, but there are common warning signs. It's probably time to get support if you're:

• feeling overwhelmed by money worries

• feeling isolated (especially if you run your business alone)

• struggling to concentrate or make decisions

• putting off invoices, emails and anything to do with money

Pay attention to the bit about avoidance.

It's easy to tell yourself you're "just busy". Often, your brain is trying to protect you from stress. The downside is avoiding the problem only makes it grow more severe.

If your sleep is shot, your temper's shorter or you dread opening your laptop, treat that as a signal to act early. Not because you're being dramatic, but because you want to stop a spiral. 

What to do today

This is a simple plan for the days when you need to deal with late payment but it feels beyond you.

Step 1: Get it out of your head

Grab a piece of paper or open a spreadsheet, and list the basics:

• Invoice number and amount you're owed

• When the payment was due

• What was agreed (terms, purchase order, milestones)

• Last contact with the client and what you said

• Your next date of contact

This is about getting the problem onto a page so it stops circling your brain.

Step 2: Pick one small task, not the whole solution

Choose one task you can finish today in under 20 minutes:

• Send one calm email to chase the payment, listing just the facts.

• Pull the contract terms and attach them to the email.

• Book a call with your accountant or bank.

• Raise an enquiry with the SBC if the issue is within its remit.

Progress reduces anxiety. Not because the cash arrives instantly, but because you regain some control.

Step 3: Use the right route for disputes

If you're dealing with late payment from a larger business, the SBC may be able to help. It can:

• explain your rights and options

• help you think through how to approach late payment

• in some cases, contact the business that owes you money

One important point. If you're considering legal action, check this guidance first, because starting legal proceedings can affect what support is available.

Step 4: Get cash flow advice before it becomes a crisis

Even a short conversation with the right service can buy you headspace.

If the problem is "I don't know how I'll cover next month", speak to a debt or money guidance service early, while you still have options.

Here are some handy links:

• Money guidance and support (Moneyhelper)

• Debt and money advice (Citizens Advice)

• Free debt advice (StepChange)

• Debt advice for the self-employed and small businesses (Business Debtline)

Step 5: Tell someone what's going on

Late payment might be making you feel embarrassed, but it shouldn't. It happens to experienced operators as well as new founders.

The SBC's guidance highlights how connecting with other business owners can make a real difference, not just for tips but for reassurance.

Speak to another founder, a trade body or a peer group. Even one conversation stops you feeling like you're carrying it alone.

If late payment is starting to affect your mental health, treat that as real – not as something you should "push through".

Take one small practical step today, then add support around you. The goal is simple – to protect your head while you protect your business.

People also read

• Late payment in 2026: The year slow payers run out of road

• Late payments: Tips to help small businesses get paid on time

• Supplier payment transparency: Why SMEs must think and act now