business

Digital Giants Vow Fairer Payments For Small UK Businesses

Image by Mohamed Hassan from Pixabay

Major online marketplaces and payment providers have collectively signed a unique Fair Treatment Pledge designed to protect small businesses from undue disruption to their cash flow and payments.

The pledge accompanies new guidance published by the Small Business Commissioner (SBC), launched at the "Free the Founder" event, which aims to support small firms as they transition to digital platforms.

A key issue for small businesses using these platforms is the temporary withholding of funds, which can occur as providers conduct checks to comply with various financial regulations.

Key Commitments for Transparency

The new 10-point pledge requires signatories to commit to:
Communicating effectively with small businesses when funds are withheld.

Supporting them in understanding their legal and regulatory obligations.

Dealing with complaints or issues as swiftly as possible.

The guidance itself sets out the specific terms and regulations under which funds may be withheld, and importantly, advises small businesses on how they can navigate this process to avoid or resolve such situations.

This initiative highlights a common pain point for small and medium-sized enterprises (SMEs) worldwide: maintaining predictable cash flow while operating within the complex regulatory frameworks of international digital commerce. Small businesses across Yorkshire and the Humber, the North East, Lancashire, and Cumbria are increasingly reliant on these global platforms for growth.

I’m delighted to see so many major businesses show real leadership and commit to treating small businesses fairly. Online marketplaces and payment providers can help boost small business productivity, but they are also under a wide range of legal obligations which can often impact small businesses' access to their funds. This guidance, along with the pledge made by these companies, will help to ensure small businesses know their rights, have the support they need, understand what factors influence the withholding of funds and help them make the most of the opportunity going digital brings. This is also just the start. We are working with more companies that we hope will be able to sign in due course so that we can promote this guidance and reach the widest audience of SMEs.

Emma Jones, the Small Business Commissioner

Industry Support

The initiative has garnered support from several major firms, including those with significant UK operations and a presence in the North of England's growing digital sector:

We want to make sure that our sellers get paid as quickly as possible, especially the hundreds of thousands of small businesses who use our platform every day. We know how vital cash flow is to allowing small businesses to invest and grow. Sometimes we have to hold payments either because of regulations or as part of our efforts to ensure a safe marketplace for our buyers. However, this should be the exception rather than the rule. We therefore welcome this initiative by the Small Business Commissioner to help businesses get the support they need to grow.

Eve Williams, VP and General Manager, eBay UK

Small businesses are the driving force behind local economies, and they remain at the heart of everything we do at PayPal. We engage with them daily and understand the unique challenges they face, from managing cash flow and building customer trust to scaling operations in an increasingly digital marketplace. We are proud to sign this pledge as part of our ongoing commitment to provide small businesses with financing and safe, secure, and easy-to-use digital payment solutions that not only help them get paid swiftly but also protect them and their customers at every stage of their journey. We look forward to continuing our collaboration with the Small Business Commissioner as the new guidance is published, strengthening our shared mission to empower small business success.

Georgina Robertson, Head of SMB UK, PayPal

Mr. Qin Sun, Director at Temu UK, said: “We’re proud to join this pledge as part of our commitment to creating growth opportunities for small businesses. It reinforces our approach of ensuring fair treatment and timely payments, so sellers can focus on building their businesses on Temu.”

Cas Paton, Founder & CEO at OnBuy said:
"OnBuy was founded on principles of fairness, transparency, and putting sellers first. Signing onto this code of conduct isn’t just ticking a box for us - it’s a public affirmation of the way we’re doing business. We believe small businesses should never be left guessing about their money, and this guidance sets the standard that all marketplaces should uphold."

Dominic Allonby, Founder & Chairman, Fruugo Plc said:
“Since Fruugo's earliest days as a small business startup itself we experienced all the usual ups and downs of growing in a competitive, global landscape. Reliable cash flow was one of the keys to our survival in the early days and suppliers and partners who paid us promptly were like a godsend to us. We therefore think it is only right that all small businesses are paid promptly and treated fairly since their ultimate success is, in many ways, fundamental to the success of our country's whole economy long term. We wholeheartedly support this excellent initiative.”

Luke Griffiths, UK CEO, SumUp said:
"At SumUp, we exist to empower small businesses to thrive. We know that timely access to funds is vital for their success, which why transparency and fairness are built into how we operate. We’re proud to support the Small Business Commissioner’s pledge and to work alongside other industry leaders to promote clear, responsible practices that help small businesses stay in control of their cash flow.”

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