Is late payment from another business causing you cashflow issues?
You can claim interest and debt recovery costs if another business is late paying for goods or services.
If you don’t have agreed payment terms, the law says the payment is late after 30 days for public authorities and 60 days for business transaction after either:
The interest you can charge if another business is late paying for goods or services is ‘statutory interest’. This is 8% plus the Bank of England base rate for business to business transactions.
Check the current Bank of England base rate and previous rates
If your business is owed £1,000 and the Bank of England base rate is 0.5%:
The following is a breakdown of how much compensation you can claim under the Late Payment of Commercial Debts (Interest) Act:
We have the expertise you need to pursue outstanding invoices. Our letters before action can include late payment interest and compensation pursuant to the Late Payment of Commercial Debts (Interest) Act 1998. If you wish to discuss any aspect of Debt Recovery, please contact Gina.
The content of this webpage is for information only and is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. PDT Solicitors LLP accepts no responsibility for the content of any third party website to which this webpage refers.