Many businesses in the current economic climate are increasingly experiencing late payment of invoices. It is important at this time to review your credit control procedures and the checks you carry out when winning new orders.

If you do experience late payment well drafted and enforceable trading terms will help maximise your prospects of securing payment and ensure you are adequately compensated for the late payment. We can prepare or review terms of trading to ensure these met your specific requirements.

In the meantime this is a timely opportunity to consider if your current trading terms have no or inadequate late payment provisions whether to charge interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.

The Act has been in full force since 7th August 2002 and applies to all business to business debts. The Act was introduced to promote prompt payment between businesses and perhaps is more relevant now than at any time since it came into full force. It applies to all contracts entered into since that date which do not provide a ‘substantial’ remedy for late payment. Informing and reminding your customers that you may charge interest and compensation under this Act may serve as an incentive for them to pay you on time.

Remember that it is well known that taking prompt action to recover payment of overdue invoices increases the prospect of the debt been recovered. Our commercial non disputed debt recovery service offers a fixed low cost solution which can be used at an early stage of your credit control.

Click here to view details of our Dispute Resolution department.

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