Late Payment of Commercial Debts
If you are owed money from another business because they have failed to honour a contract or to send payment on time, contact the commercial debt recovery solicitors at Trethowans today.
The Late Payment of Commercial Debts Act
Unless there are terms in the contract that state otherwise, a payment legally becomes late 30 days after the customer receives the invoice or the date the goods or services were delivered (if this is later). To protect businesses from late payment of commercial debts, there is a law that allows you to charge ‘Statutory Interest’ as covered under the Late Payment of Commercial Debts (Interest) Act 1998.
This act has two main purposes; to compensate creditors for the late payment of debts and to deter late payment. It only applies to the supply of goods and/or services that were purchased for commercial purposes and where there is no provision for interest in your Terms of Business.
How much can I claim?
Under the Late Payment of Commercial Debts act, businesses are able to claim interest, compensation and their reasonable cost of collecting debt where these exceed the compensation for invoices that are not paid on time.
Interest can be claimed at 8% over the Bank of England base rate together with compensation at £40 – £100 per invoice (depending on the total invoice amount). You are able to claim late payment interest, compensation and costs if:
- You have supplied goods and/or services
- The buyer bought them for commercial purposes
- The contract is not a consumer credit agreement
- The contract doesn’t contain a provision for interest
To learn more about the Late Payment of Commercial Debts (Interest) Act 1998 and how it applies to your business, please don’t hesitate to contact our specialist debt collection team on 0800 2800 421.
Helping you reclaim your outstanding debt
Trethowans’ dedicated team of debt collection solicitors has years of experience helping clients successfully receive interest, compensation and costs for the late payment of commercial debts. Our specialist, personalised services will ensure you fully understand your rights and how they can apply to your business, and we will support you throughout the entire the debt recovery process to ensure a positive outcome.
Our late payment of commercial debts services includes:
- Reviewing your terms of business to ensure your chances of recovering all your costs are maximised
- Drafting new payment terms for your business
- Claiming historical interest and/or compensation for past debtors
- Composing and sending a Late Payment Demand to your current debtor(s), including calculating applicable interest, compensation and costs of recovery
- Issuing court proceedings, obtaining and enforcing judgment if necessary
As one of the South’s leading law firms, Trethowans is here to provide you with the expert legal advice and guidance you need on all matters relating to the late payment of commercial debts. Simply call us on 0800 2800 421 and we’ll be happy to answer any questions and discuss your case.