The Late Payment Legislation exists to protect all businesses but particularly small and medium-sized enterprises (SMEs) who are most vulnerable to financial burden as a result of late payments. Late payments for any business can cause trading difficulties and so the Late Payment Directive’s ethos of paying on time being the norm, and late payment seen as unacceptable aims to combat this.
Late Commercial Payments
If another business is late paying for goods or services, you can claim interest and debt recovery costs. The law states a payment becomes late after 30 days for public authorities and 60 days for business, unless otherwise agreed.
Statutory interest on late payments is charged at 8%, plus the Bank of England base rate (currently 0.5%).
A fixed sum can also be charged on top of the interest for debt recovery:
Up to £999.99 = £40
£1000.00 to £9999.99 = £70
£10,000.00 or more = £100
Our Debt Recovery solicitors advise the best way of ensuring prompt payment is to agree terms in advance of any transaction. Timely and accurate invoicing is also key, as is a genuine focus on customer relations and managing cash flow.
Should all else fail, using a solicitor is a way of recovering debts. Using a solicitor can potentially be expensive, however, at Wrigley Claydon we have an experienced Debt Recovery team who can handle all manner of Commercial, Consumer and Personal debt recovery by using the latest technology which ensures that you receive an efficient, cost effective service. We offer our clients a low cost fixed fee service and aim to recover the majority of our fees from the Debtor.
Should the debtor seek to dispute your claim, we have an experienced team of lawyers in our Commercial Litigation department who will be able to provide you with appropriate advice on how to take the matter forward and the costs involved in doing so.
Contact Shalish Mehta in our Debt Recovery team on 01706 815 712 or 0161 624 6811, or email Shalish Mehta at Shalish.mehta@wrigleyclaydon.
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