Are late payments from clients causing a strain on your business’s cash flow? As a debt recovery specialist, I’ve seen countless businesses struggle with overdue invoices, especially when they lack clear terms and conditions. However, a little-known secret ingredient that can empower you to charge interest and penalties on those late payments is the Late Payment of Commercial Debts and Interest Act 1998.
Understanding the nuances of this legislation can be a game-changer for businesses seeking to recoup outstanding debt balances. The Act provides a legal framework allowing businesses to levy interest and penalties on late payments, even without explicit terms and conditions. If your clients are tardy in settling their invoices, you can charge them interest as stipulated by law.
But how do you calculate the interest owed?
Thankfully, handy tools like the UK Late Payment Interest Calculator are available at www.dontpaylate.uk.
With this tool, you can input the outstanding debt balance and other relevant details to determine the appropriate amount of interest to charge. It’s a straightforward way to ensure you’re fairly compensated for the financial inconvenience caused by late-paying clients.
Moreover, this Act isn’t just about charging interest; it also allows for imposing penalties based on the value of the outstanding debt balance. By leveraging these provisions, businesses can pressure clients to settle their dues promptly and responsibly.
In conclusion, if you find yourself grappling with late payments and lacking explicit terms and conditions, don’t despair. The Late Payment of Commercial Debts and Interest Act 1998 is your ally in the fight against overdue invoices.
Remember, you don’t have to navigate this journey alone. If you have a ledger of unpaid debt balance, then I’m here to offer expert assistance every step of the way. Together, we can devise a strategic plan to alleviate the burden of late payments and restore financial stability to your business, together with issuing legal proceedings to keep those non-payers at bay.
Get in touch for a no-obligation 30-minute chat to see how I can assist.