Fatima, Legal Consultancy Owner, London.

• Sector: Legal Consultancy

• Business Size: Medium, 20 employees

• Location: London

• Experience: 20 years in law, 8 years as a business owner

• Impact: Late invoice payments from clients have caused Fatima to take out a short-term business loan, incurring high interest rates and reducing profitability.

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“I left a senior position in a law firm to start my own consultancy eight years ago. I’m proud of what I’ve built—a team of 20 handling everything from corporate compliance to employment law. But late payments from clients remain one of the biggest headaches.

One incident still bothers me. A long-standing client delayed paying a substantial invoice—£25,000—for over four months. They had every excuse: ‘The accounts team is reviewing it,’ or ‘It’ll be processed next week.’ Meanwhile, I had staff to pay and office rent due. I ended up taking out a short-term business loan to bridge the gap. The interest on that loan ate into our profits, and I had to cancel plans to hire an additional associate.

It’s frustrating because these clients are often large corporations with the resources to pay on time. Yet they think nothing of dragging out payments to smaller businesses. The irony is that we’re providing legal advice to help them run smoothly, and this is how they repay us.

Now, I’m more cautious. I include late payment clauses in contracts, but enforcing them can be tricky without damaging client relationships. Late payments don’t just impact cash flow; they hinder growth and undermine trust.”