Circumstances change and previous research by experian has shown that up to half of bad debts come from long- standing customers. Perhaps next year some of the poor payers may find themselves with unwanted awards. The late payment of commercial debts interest act 1998 gives small businesses the statutory right to claim interest on late payments from other businesses. Negotiate and agree payment terms before agreeing to the work. However, recent surveys suggest that the legislation has had little effect on the speed of payments. We recommend chasing up the original invoice by phone or letter following the expiry of the initial typically 30 day payment period.

The late payment act will enable companies with less than 50 employees to charge large companies interest at eight per cent above base rate on late payment of invoices. Send both of these directly to the accounts department, not to an editor who may be tempted to put them in a drawer. There can be no excuse for paying invoices several hundred days late. Auto credit.

Any part payment reduces the interest first not the principal debt. It is important that unpaid sellers feel confident of having disputes settled in court if needed. Voluntary insolvency. Payment is due within 30 days of the invoice date. Among medium- sized companies, those in the financial services sector extended their payment times more than any other sector - 13 days. You are fully entitled to quote this on your invoices - something like: "payment is due within 30 days of the invoice date.

None of the information contained in this website constitutes, nor should be construed as financial advice. Add guide to my print portfolio print later as pdf email options - what are my email options. Late payers - how to manage debts.

Legal expenses insurance - this covers the costs of recovering debts though the courts. Agree payment terms at the outset of a deal and stick to them. Days - phone call to customer - identify any outstanding reason for payment failure.

Add guide to my print portfolio print later as pdf email options - what are my email options. Days - instruct solicitors to commence county court action the vast majority of late payers settle outstanding debts after the second reminder. Late payment of commercial debts calculator interest and compensation. Your right to claim interest on late payments. It also recommends setting terms of trade out clearly to avoid conflict in the first place, credit- checking companies, and offering incentives for prompt payment, such as discounts. Your right to claim interest on late payments. To protect yourself, you should always quote the settlement date 30 days is typical and the late payment terms on your invoices.