More than 400,000 small businesses in the UK are at direct risk of going under as late payments continue to rise.

Read more: 400,000 Small Businesses At Risk As Late Payments Scandal Bites

Directors found abusing company closure rules to worm their way out of paying creditors can now be disqualified from holding future positions.

In a welcome crackdown on debt avoidance, the government has extended the powers of the Insolvency Service so it can now investigate voluntary dissolution of companies. If directors are found to have shut down their business with the primary motive of wiping off debts, the Insolvency Service can now bring misconduct charges against them.

As well as being disqualified for up to 15 years, directors could be ordered to pay compensation to unpaid creditors.

Read more: Rogue Directors Face Disqualification for Dissolving Companies to Avoid Debts

Fed up of clients who refuse to stick to agreed payment terms? Feel like you're being held to ransom by large customers who insist on making suppliers wait two or three months before they pay for goods or services received?

The government’s Small Business Commissioner (SBC) wants to hear from you. The Commissioner’s office, which is part of the Department for Business, Energy and Industrial Strategy (BEIS), is holding a consultation on SME’s experiences of late payments that closes on 15th December.

Read more: Let Your Voice Be Heard on Late Payments

As the financial fallout of the COVID-19 pandemic continues to sweep through the economy, latest figures show that SMEs have been hit by a 20% surge in late payments over the past 12 months.

According to research from cloud-based credit management platform Know-It, the total value of overdue invoices UK-based small businesses are now waiting on has leapt to £61 billion, a sharp rise from the no less eye watering figure of £50bn reported in 2020.

Read more: COVID Triggers 20% Spike in Overdue Payments Owed to SMEs