Lack of Awareness Of Late Payment Law Could Be Costing You Money
Late paying customers are not only a nuisance, they can also cost your business more than the sums they owe. Fortunately there are laws to protect your business from late paying customers and it is worth reading up on them if you ever need to take advantage.
So the first thing to do if you are not aware of late payment laws is to read up on them. Under the Late Payment of Commercial Debts (Interest) Act 1998, you are entitled to claim compensation from any customers who pay you late or refuse to make their payments on time. This usually comes in the form of an interest payment charged on the amount owed.
The Act is designed to discourage businesses from paying late when they have received goods and services. Paying bills on time is an essential part of doing business and businesses with healthy bank balances are of course what the economy needs. Protecting businesses was why the Act was introduced in the first place.
A payment is deemed to be late when payment hasn’t been received on the date specified in the invoice. Therefore, proceedings can start immediately.