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August 2025: Purbeck Insurance coverage Companies, the UK’s solely supplier of Private Assure Insurance coverage for SME enterprise homeowners, has welcomed the UK Authorities’s announcement of probably the most vital legislative reforms in 25 years to deal with late funds, describing the transfer as “lengthy overdue.”
The reforms, unveiled as a part of the Authorities’s Small Enterprise Plan, will introduce:
- Most fee phrases of 45 days
- Empowerment of the Small Enterprise Commissioner to difficulty fines and conduct spot checks
- Enforcement of a 30-day bill verification interval
Todd Davison, Managing Director of Purbeck Insurance coverage Companies, commented:
“These reforms are lengthy overdue. For too lengthy, SMEs have been pressured to bankroll their prospects, with late funds inflicting severe cashflow points and forcing many to take out private guarantee-backed loans simply to remain afloat. The brand new legal guidelines will lastly give small companies the safety they deserve and assist degree the taking part in discipline.”
Purbeck’s personal analysis underscores the urgency of the problem:
- 77% of SMEs are owed cash by late-paying prospects
- Common unpaid invoices vary from £8,441 for micro companies to £22,102 for bigger SMEs
- Companies in Better London, Scotland, and the West Midlands are among the many worst affected
- 60% of SMEs say late fee is harming their enterprise
In line with Purbeck’s Q2 2025 Private Assure Insurance coverage Monitor:
- Common private assure demand for a small enterprise mortgage has risen to £194,499
- Purposes for private assure insurance coverage grew by 3.2% yr on yr
- June 2025 was a document month for Private Assure Insurance coverage (PGI) purposes, up 17.8% on June 2024
Davison added: “Whereas we’re seeing indicators of confidence returning to the SME sector, the burden of private ensures stays excessive. These new legal guidelines will assist scale back the necessity for emergency borrowing and permit SMEs to deal with progress somewhat than survival. We urge the Authorities to implement these reforms swiftly and guarantee strong enforcement.”
Purbeck continues to advocate for SMEs to guard themselves with Private Assure Insurance coverage when securing finance, particularly in unsure financial situations.
