Office of the Small Business Commissioner

What Office of the Small Business Commissioner does

The Office of the Small Business Commissioner (OSBC) is an independent public body established by the UK Government under the Enterprise Act 2016 to address late payments and unfair payment practices affecting small businesses. Established in 2016 and headquartered in Birmingham, it operates as a Non-Departmental Public Body (Arm's Length Body) under sponsorship of the Department for Business and Trade, serving the whole of the UK — England, Wales, Scotland, and Northern Ireland. Its core constituency is the UK's 5.5 million SMEs, which collectively employ 60% of the private-sector workforce, and it addresses a market failure estimated to cost the UK economy £11 billion annually in late-payment disruption and approximately 14,000 business closures per year.

The OSBC delivers its mandate through a portfolio of free services delivered via its website (smallbusinesscommissioner.gov.uk): a free Enquiry Service where caseworkers contact larger businesses on behalf of SMEs to mediate payment disputes; an Interest Calculator that computes statutory interest and compensation chargeable on late or unpaid invoices; and the Fair Payment Code, a tiered certification scheme (Gold/Silver/Bronze) launched in December 2024 to replace the Prompt Payment Code. It also publishes guidance on e-invoicing, contract negotiation, difficult conversations, and mental health support for SMEs affected by late payments, and operates communications channels including the SBC Weekly Update newsletter and the "Get the Money Moving" webinar series. A proposed Adjudication Scheme under the pending Commercial Payments Bill would extend these services with quasi-judicial dispute resolution and penalty-levying powers.

The OSBC is funded through a fixed annual budget allocation from the Department for Business and Trade — £1.23 million for the current cycle — and provides its services at no cost to eligible UK SMEs with fewer than 50 employees. In 2025-26, the enquiry service enabled SMEs to recover over £1.5 million in overdue payments, its strongest result in five years and exceeding its own operating budget. Distribution relies on direct casework, partner amplification through professional bodies (ICAEW, ACCA, IPSE, FSB, ICB), payment-platform partnerships via the Fair Treatment Pledge (Stripe, PayPal, Square, eBay, Temu, Xero, Sage), and earned media through GOV.UK and parliamentary channels.

Name

Office of the Small Business Commissioner

Legal name

Office of the Small Business Commissioner

Website

https://smallbusinesscommissioner.gov.uk

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

The Office of the Small Business Commissioner is a UK government independent public body that helps small businesses recover overdue payments from larger customers through a free enquiry service, interest calculator, and the Fair Payment Code certification scheme.

Ownership category

akta.pro rank

Headquarters

HQ city

Birmingham

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Government Funding: The OSBC is funded through an annual budget allocation from the Department of Business and Trade, currently at £1.23 million per year. The organisation recovers more than its annual budget allocation through payment dispute resolution, returning value exceeding its operating costs.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels9 records

Core offering

The Office of the Small Business Commissioner (OSBC) is an independent UK public body that provides a free enquiry service to small businesses with unresolved payment disputes against larger customers, mediating to recover overdue invoices. It also operates the Fair Payment Code, a tiered certification scheme (Gold, Silver, Bronze) recognising businesses that demonstrate prompt payment practices, and publishes guidance resources including an Interest Calculator tool for late-payment charges.

Product overview

The Office of the Small Business Commissioner (OSBC) is an independent public body established under the Enterprise Act 2016 to tackle late payments and unfair payment practices in the UK. The OSBC provides a portfolio of services including an Enquiry Service that helps small businesses resolve payment disputes with larger customers, an Interest Calculator for computing late payment charges, and the Fair Payment Code—a tiered award scheme recognizing businesses for prompt payment practices. The organization also publishes guidance on e-invoicing, contract negotiation, and managing the mental health impact of late payments. A proposed Adjudication Scheme would enable out-of-court resolution of payment disputes. Services are delivered through the OSBC website, weekly newsletters, and the 'Get the Money Moving' webinar series.

Differentiator

Problem solved

Functional benefit

Products and services

• Enquiry Service A free service assisting small UK businesses (fewer than 50 employees) that have unresolved payment disputes with larger customers. Caseworkers contact the larger company on behalf of the small business to mediate recovery of the unpaid invoice.
• Interest Calculator An online tool that calculates the statutory interest and compensation a small business can charge on invoices paid late or not paid within agreed payment terms.
• Fair Payment Code A voluntary tiered certification scheme (Gold, Silver, Bronze) for businesses demonstrating prompt payment practices to suppliers. Gold requires paying at least 95% of invoices within 30 days; Silver requires 95% within 60 days with at least 95% to small businesses within 30 days; Bronze requires 95% within 60 days.

Quantifiable outcome

• £1.5 million recovered for SMEs in 2025-2026 financial year
• +3 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

24 partnerships are on record, tiered minor and core.

• Funding CircleminorStrategic or Co-development Partner · 18 March 2026Small business lending platform. Chief of Staff Abigail Whittaker appointed to OSBC Advisory Board bringing expertise in business operations and communications.
• Bright BlueminorStrategic or Co-development Partner · 18 March 2026Independent think tank. Founder and Executive Chair Ryan Shorthouse appointed to OSBC Advisory Board bringing expertise in policy and business operations.
• Square (Squareup International Ltd)minorStrategic or Co-development Partner · 20 January 2026Major business technology platform signing the Fair Treatment Pledge. CEO John O'Beirne committed to helping merchants get paid quickly and communicating clearly on regulatory holds.
• eBay UKminorStrategic or Co-development Partner · 13 October 2025Major online marketplace signing the Fair Treatment Pledge committing to fair cashflow and payment practices for small businesses using the platform.
• PayPal UKminorStrategic or Co-development Partner · 13 October 2025Major payment provider signing the Fair Treatment Pledge. Head of SMB UK Georgina Robertson committed to supporting small business cashflow.
• Temu UKminorStrategic or Co-development Partner · 13 October 2025Online marketplace signing the Fair Treatment Pledge with Director Qin Sun committing to fair treatment and timely payments for sellers.
• OnBuyminorStrategic or Co-development Partner · 13 October 2025Online marketplace founded on principles of fairness and transparency. Founder and CEO Cas Paton signed the pledge affirming commitment to small business payment standards.
• Fruugo PlcminorStrategic or Co-development Partner · 13 October 2025Global marketplace that experienced early challenges with cashflow. Founder and Chairman Dominic Allonby supports the initiative for fair treatment of SMEs.
• SumUpminorStrategic or Co-development Partner · 13 October 2025Payment solutions provider signing the Fair Treatment Pledge. UK CEO Luke Griffiths committed to transparency and fairness for small business cashflow.
• StripeminorStrategic or Co-development Partner · 13 October 2025Payment infrastructure company signing the Fair Treatment Pledge for small businesses.
• Department for Business and Trade (DBT)coreStrategic or Co-development PartnerPrimary sponsor department providing annual funding allocation of £1.23 million. The OSBC is accountable to the Secretary of State for Business and Trade through its sponsorship team at DBT. Collaborates on policy development, legislative measures, and government-wide initiatives on late payments.
• UK Shared Business Services (UKSBS)coreStrategic or Co-development PartnerProvides procurement services ensuring suppliers meet ethical and legal standards expected of public sector partners. OSBC operates on DBT's IT infrastructure managed through UKSBS.
• ICAEWminorStrategic or Co-development PartnerInstitute of Chartered Accountants in England and Wales. Chief Executive Alan Vallance quoted in support of new SBC powers, emphasising the damaging nature of late payments to the economy.
• ACCA UKminorStrategic or Co-development PartnerAssociation of Chartered Certified Accountants UK. Director Abdul Goffar expressed support for SBC expansion and cooperation with the organisation.
• IPSE (The Association of Independent Professionals and the Self-Employed)minorStrategic or Co-development PartnerRepresents freelancers and independent professionals. Policy Director Andy Chamberlain supported the Fair Payment Code launch, noting research showing over half of freelancers suffer late payment.
• Federation of Small Businesses (FSB)minorStrategic or Co-development PartnerUK's largest business support organisation. Executive Director Craig Beaumont supported the Fair Payment Code, encouraging corporates to sign up.
• Good Business PaysminorStrategic or Co-development PartnerCampaign organisation advocating for faster payments to small businesses. Founder and CEO Terry Corby supported the Fair Payment Code launch.
• National Enterprise NetworkminorStrategic or Co-development PartnerNational membership organisation supporting enterprises. Operations Director Carol Daniels welcomed the Fair Payment Code as significant for micro businesses facing cashflow concerns.
• Forum for Private Business / Micro Business AllianceminorStrategic or Co-development PartnerBusiness support organisation. Managing Director Ian Cass, also Chair of Micro Business Alliance, pushed for rewrite of Prompt Payment Code.
• Xero UKminorStrategic or Co-development PartnerAccounting software provider supporting the Fair Payment Code. UK Country Manager Kate Hayward noted the devastating impact of late payments on small businesses.
• SageminorStrategic or Co-development PartnerBusiness management software provider. CEO Steve Hare supports the Fair Payment Code and e-invoicing technologies to help SMBs get paid on time.
• Barclays Business BankingminorStrategic or Co-development PartnerBanking provider supporting the Fair Payment Code. Head of Business Banking Hannah Bernard noted support for over one million small business customers.
• LeapersminorStrategic or Co-development PartnerResearch organisation whose 2025 research on financial stress and mental health of small business owners informed OSBC's mental health guidance.
• Institute of Certified Bookkeepers (ICB)minorStrategic or Co-development PartnerProfessional body for bookkeepers. Survey found 80% of members proactively reduce debtor days. CEO Ami Copeland highlighted bookkeepers' role in helping SMEs with cashflow.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Legal Ombudsman: Statutory scheme resolving complaints about lawyers and law firms in England and Wales; analogous as a small-scale public body providing independent, free dispute resolution in a defined service sector.
• The Property Ombudsman: UK-approved redress scheme for property agents, surveyors and letting agents; comparable as a sector-specific dispute resolution body with a small specialist team handling consumer/SME complaints.
• Financial Ombudsman Service: UK statutory ombudsman resolving disputes between consumers/small businesses and financial services firms; comparable as a publicly funded, statutory dispute-resolution body with binding-like determinations and broad awareness.
• Groceries Code Adjudicator: UK statutory regulator adjudicating payment and contractual disputes between large grocery retailers and their direct suppliers — the closest functional analogue to OSBC, focused on supply-chain payment practices in a specific sector.
• The Pensions Ombudsman: UK statutory ombudsman resolving complaints about pensions administration and disputes; comparable in structure, statutory basis and small specialist team, though operating in a different sector.

Broad incumbents

• U.S. Small Business Administration: US federal agency supporting small businesses through lending, contracting, and advocacy; a much larger international counterpart, relevant for SME-facing public programmes rather than dispute resolution specifically.
• Citizens Advice: UK-wide advice network providing free guidance to consumers and small businesses on debt, contracts and disputes; comparable as a publicly funded frontline advice service for SMEs facing payment problems.
• Payment Systems Regulator: UK economic regulator overseeing payment systems (Bacs, Faster Payments, LINK, etc.); relevant as a UK public body regulating payment infrastructure and market practices, though broader in remit than OSBC.

Emerging players

• Federation of Small Businesses: UK's largest membership organisation lobbying on small-business issues including late payment; comparable as an SME advocacy body with overlapping stakeholder base, though privately funded rather than statutory.

Regional players

• Better Business Bureau: US non-profit network rating businesses on reliability and mediating consumer disputes; a regional equivalent operating a comparable trust-and-dispute function, but in a different geography and without statutory powers.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/SB_Commissioner
• YouTubeyoutube.com/channel/UCEtb9OC-jwB4i2Rm-u0YyrA
• LinkedInlinkedin.com/company/office-of-the-small-business-commissioner
• Instagraminstagram.com/sb_commissioner

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Office of the Small Business Commissioner