Do you want to claim interest on your outstanding debts but don’t know how to go about it?
Why should you lose out on accrued interest because a debtor has withheld your money? Whether this was in a business to business transaction or you are personally owed money but have no terms and conditions detailing what amount of interest you are due, we can advise on the different ways in which interest can be claimed on your debts.
You are entitled to claim interest and sometimes compensation if debtors are late in paying you your money:
- Interest can be claimed on debts that are owed for services or goods from the date the invoice is due without Court proceedings even needing to be issued, if parties are acting with each other in the course of business. The amount you can claim could be as much as 8% over the base rate and you are also entitled to compensation in accordance with the table listed below:
(a) for a debt less than £1,000, the sum of £40
(b) for a debt of £1,000 or more, but less than £10,000, the sum of £70
(c ) for a debt of £10,000 or more, the sum of £100
- Alternatively, interest can be claimed on debts from the date the amount is due, but only once Court proceedings have been issued. This can be claimed whether the parties are or are not acting in the course of business and even where they have not agreed to interest being payable in terms and conditions beforehand.
- Interest can be claimed pursuant to your own terms and conditions if these are applicable to the debt and will be at the rate set out in your terms, whether this is compound interest or simple.
We have developed a helpful simple interest calculator to help you work out how much interest you could request to be paid on top of your debt.