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As a Leading Debt Collection Agency in the UK, Federal Management is helping Businesses in Birmingham and the West Midlands recoup overdue invoices and unpaid fees.

Birmingham, United Kingdom – 12th October, 2026 – Federal Management, a leading UK debt collection agency with offices in Birmingham, is encouraging Birmingham and West Midlands Businesses to deal with overdue invoices earlier. The call comes as late payments continue to put pressure on cash flow, jobs and growth throughout the region.

The national picture is stark. Late payments cost the UK economy almost £11 billion every year, according to research drawing on Small Business Commissioner data. Around 14,000 UK businesses close each year because of late payments, roughly 38 every day. At any one time, firms across the country are owed around £26 billion in overdue payments.

As the UK’s second city and the centre of a major regional economy, Birmingham is home to thousands of small and medium-sized firms. Many of them supply larger businesses through long, layered contracts. When payments slow at the top of these supply chains, smaller suppliers further down often feel the impact first and hardest.

Unpaid invoices also eat into time. UK businesses lose an estimated 133 million staff hours each year chasing money they are owed, with the average affected firm spending 86 hours a year on the task. In smaller West Midlands businesses, that work often falls to owners and directors, taking their focus away from winning work and serving customers.

Several of the region’s key industries are especially exposed:

• Manufacturing: The West Midlands has deep roots in engineering and automotive supply chains. Manufacturers often pay for materials and labour well before customers settle their invoices.
• Construction: Major infrastructure and regeneration projects across Birmingham depend on networks of contractors and subcontractors. Long payment chains and tight margins leave smaller firms vulnerable to delays.
• Logistics: With its central location and strong transport links, the region is a key distribution hub. Haulage and warehousing firms carry high running costs and depend on regular payment.
• Professional services: Birmingham’s large legal, accounting and consultancy sector frequently reports extended payment terms set by bigger clients.

The government has responded to the problem. Earlier in 2026, Blair McDougall, Minister for Small Business and Economic Transformation, announced the largest package of late payment reforms in 25 years. The measures include a 60-day cap on payment terms when large businesses pay smaller suppliers, mandatory interest on overdue invoices, and expanded powers for the Small Business Commissioner. These new powers include the ability to investigate poor payment practices and issue significant fines.

Managing Director of Federal Management Marc Curtis-Smith said: “Birmingham and the West Midlands have a proud, hard-working diverse business community, yet too many firms are being held back by money they have already earned. A manufacturer or contractor waiting months for payment can quickly struggle to pay staff and suppliers. The new reforms were an important step, but it will take time for payment habits to change. Until then, West Midlands businesses should not let overdue invoices drift. The earlier a debt is addressed, the better the chance of recovering it.”

Federal Management advises West Midlands businesses to review their credit control processes, set clear payment terms and escalate overdue accounts promptly rather than writing them off as bad debt. Firms that want support can learn more about Federal Management by visiting their website.

About Federal Management

Federal Management is a long standing UK debt collection agency providing commercial debt recovery services to businesses of all sizes. Since 2004, Federal Management has been supporting Businesses across Birmingham, the West Midlands and the wider UK, helping them recover overdue payments professionally while protecting valued client relationships.

For more information, visit: https://www.federalmanagement.co.uk/west-midlands-debt-collection/

Media Contact
Company Name: Federal Management – Debt Collection Birmingham Office
Contact Person: Chris Spencer
Email: Send Email
Phone: 0333 043 4423
Address:Office 1, Izabella House 24-26 Regents Place
City: Birmingham
State: West Midlands
Country: United Kingdom
Website: https://www.federalmanagement.co.uk/west-midlands-debt-collection/