According to new research from Funding Options, this compares to just £380,000 repaid in the previous six months.
Government launched the Small Business Commissioner in December 2017 to help small companies resolve payment disputes with larger companies. The office has recovered £3.7 million for SMEs since it started around 15 months ago.
Late payments is seen as one of the biggest problems affecting small businesses, according to Bibby Financial Services in its latest SME confidence tracker. Huge cash flow problems can arise for a small business from just one major client not paying an invoice on time, in extreme circumstances causing insolvency.
The commissioner has been criticised for making a slow start in its mission to help recover money owed to small business. Fund Options says, however, it is now becoming more effective.
There had been concerns that small businesses would be reluctant to complain to the Small Business Commissioner about larger clients for fear of losing custom. However, the progress that the commissioner is making should encourage other small businesses to come forward, argues Funding Options.
“Larger companies certainly have the means to pay on time, so it’s a straightforward issue that can be avoided.”