The Late Payment of Commercial Debts (Interest) Act 1998
Are you tired of dealing with non payers? Did you know that there's an act designed to help you with this issue?
The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to charge interest and claim compensation for the costs incurred due to late payments. This act applies to all commercial transactions, regardless of the size of the business.
Under this law, businesses are required to pay their suppliers within a reasonable time frame, and failure to do so can result in penalties and interest charges.
So, how can you use this act to your advantage? Here are a few steps:
Remember, the Late Payment of Commercial Debts (Interest) Act is there to help you get paid on time.
Summary?
Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest on commercial debts that are paid late. The interest rate that you can charge is the Bank of England's base rate plus 8%. You can also charge a fixed sum for the cost of recovering the debt, depending on the amount owed:
Feel free to contact me if you have any questions
Roan Hay
Electrical Supervisor
1 年Roan, could you pm your number across to me mate, need a chat regarding a 5 figure sum owed ?? cheers Roan
Owner - Director at Danum Fire Systems Limited
1 年Nice article ??
A multi award-winning Strategic Operations, R&D, Innovation, Cost, Procurement & Supply Chain, Product, Fleet, M&A, Risk, Estate, Asset & Facilities Management professional, at K M Group, a multi award-winning business.
1 年Do your thorough due diligence and get access to quality real time Fintel, as there's always tell tale signs. That or insist on payment up front of course, but that's hard to get the customers to swallow, as so many have taken money for work they then fail to deliver. 50% up front and 50% on completion seems a sensible balance, if they can't be trusted with being granted credit.
A multi award-winning Strategic Operations, R&D, Innovation, Cost, Procurement & Supply Chain, Product, Fleet, M&A, Risk, Estate, Asset & Facilities Management professional, at K M Group, a multi award-winning business.
1 年Absolute epidemic at present Roan. So many small firms contacting and asking for advice having been strung out heartlessly, and facing dire circumstances due to cash starvation. The worst perpetrators know they can get away with it, until collections and enforcement is enacted. The ones that won't stand for it, pass up the trade knowing they will have trouble getting paid, but so many others blindly accept work from those parties and the cycle continues and the late payment culture pervades.