Financial Ombudsman complaints for small businesses: check eligibility before going to court

Many UK small businesses can take eligible banking and financial-service complaints to the Financial Ombudsman Service after first giving the financial business a chance to resolve the problem. The service is broader than consumer complaints, but turnover, balance-sheet and employee tests determine which businesses qualify.

Micro-enterprises and qualifying small businesses can use the service

The Financial Ombudsman says it can help micro-enterprises and small businesses, including sole traders, partnerships and limited companies. A micro-enterprise has fewer than 10 employees and turnover or balance sheet not exceeding €2 million.

A larger qualifying small business must have annual turnover below £6.5 million and either a balance sheet total below £5 million or fewer than 50 employees. Linked-business rules can affect the calculation.

The service can cover many banking and payment disputes

The small-business service handles complaints about financial products and services such as current accounts, payments, loans, cards, insurance and other regulated activities where the complaint falls within its jurisdiction.

Eligibility depends on the complainant, the financial business and the event. Small businesses, as distinct from micro-enterprises, can normally complain only about relevant acts or omissions occurring on or after 1 April 2019.

Complain to the bank or provider first

The Financial Ombudsman normally expects the business to give the bank or financial provider an opportunity to resolve the complaint. Make a formal complaint, state the facts, loss and remedy requested, and preserve the provider's final response.

Do not send only a long narrative. Include account statements, payment references, contracts and a short timeline. The complaint is easier to investigate when the financial loss is clearly connected to specific events.

The normal referral deadline is six months after the final response

The Financial Ombudsman says businesses usually need to contact it within six months of the financial firm's final response. Other limitation rules can also apply depending on when the issue happened and when the business became aware.

Do not spend five months negotiating informally after the final response without recording the Ombudsman deadline. If settlement discussions continue, preserve the right to refer the complaint on time.

An investigator reviews evidence from both sides

The Ombudsman's September 2026 guidance says an investigator asks both sides for evidence, assesses what happened and tells the parties their view. Many complaints resolve at that stage; some proceed to a formal ombudsman decision.

The service looks at fairness and the applicable rules and evidence. It is not the business's advocate. Present a factual case and disclose information that could affect the outcome rather than assuming the investigator will accept the business's version automatically.

Consider the Ombudsman route before starting court action

The Financial Ombudsman says it will not normally look at a matter already decided by a court. Businesses should therefore consider dispute-resolution routes before issuing proceedings where both options might otherwise be available.

For large, complex or legally urgent claims, obtain legal advice. Ombudsman eligibility and compensation limits can matter, and some disputes may be better handled through court, arbitration or another specialist scheme.

Prepare a quantified loss schedule. If the bank's error allegedly cost £42,000, split that into direct fees, lost interest, duplicated payment, professional costs or another supported category. A precise loss schedule is stronger than asking the Ombudsman to award a round figure because the business was "seriously inconvenienced".

Keep the complaint chronology short enough to follow. One page listing key dates, bank contacts, payment references and outcomes can be more useful than hundreds of pages of email with no index. Attach the detailed evidence behind the timeline.

Check linked businesses when testing eligibility. The Ombudsman's rules can require connected businesses to be taken into account, so a company that looks small on its own may need a fuller eligibility assessment where it is part of a group.

Keep expectations realistic about remedy. The Ombudsman can require a financial business to put things right within its powers, but it does not automatically award every consequential business loss claimed. The clearer the causal link between the bank's act and the business's quantified loss, the easier the complaint is to assess.

If the complaint concerns a time-sensitive account freeze, payment failure or loan event, continue protecting the business operationally while the complaint is reviewed. The Ombudsman process is not an emergency banking facility. Maintain alternative payment arrangements, cash forecasts and legal advice where the business cannot wait for the final outcome.