Why You Should Keep Your Customer Up To Date On Late Payment Policy
If you have owned a business for a period of time, there is a good chance you have come across clients who either decide not to pay for the goods or services you provided or try to delay payments.
This can sometimes set in motion a long the long and difficult process of debt recovery the outcome of which is far from guaranteed.
Your chances of success in recovering debt from a customer depend a lot on the terms and conditions you have included in any contract. One of the most important things to include in your invoices and contracts are your late payment terms.
At the very least you should make use and draw attention to the The Late Payment of Commercial Debts (Interest) Act 1998, which allows you to charge interest and costs on the supply of your goods or services.
By including this in your contracts or notifying your customer that there is a change in your terms and conditions if you don’t have this extra protection in place, you will not only provide a safeguard but also encourage the customer to pay up and avoid paying the extra interest and charges.