Moves to Crack Down on Late Commercial Payments | PYMNTS.com

The government has introduced the Commercial Payments Bill in Parliament, signaling regulators' intent to broaden payments oversight beyond consumer transactions. The bill would strengthen protections against late commercial payments by setting maximum payment terms in many contracts and guaranteeing rights to interest on overdue invoices. It would expand the Small Business Commissioner’s remit and ban several retention clauses in construction contracts, addressing concerns raised by small businesses and suppliers. Officials say the move treats late payments as a systemic risk to cash flow and resilience, linking supplier invoices, construction contracts, and broader financing practices such as BNPL. Regulators are weaving commercial payments into the broader payments agenda. The Financial Conduct Authority’s BNPL framework takes effect on July 15, bringing more formal supervision to a fast growing segment. In May, Visa announced a UK partnership with Zilch and Thredd to support the Visa Flexible Credential, enabling multiple funding sources behind a single credential. Separately, the FCA’s safeguarding regime for payment and eMoney firms, which began on May 7, requires daily reconciliations, enhanced records, and stronger fund protection, signaling tighter controls across the ecosystem.