Late payments/ charging interest ACTs

[jeanette1976]

What's the difference between the:

1. British Government legislation introduced 2002, gave all small firms the legal rights to charge interest. to get compensation for debt recovery costs;

2. Being liable to additional fees and interest in accordance with the Late Payment Act 1998.

Also, does anyone know the legallities or where i can find info on this? (I'm having a nightmare chasing payments due from Aug 06!!!)

Many thanks,

Jeanette

[kempie]

The 2002 regulations brought additions to the 1998 legislation in line with the EC Directive on late payments.

Further info here...
http://www.dti.gov.uk/bbf/small-business/info- business-owners/access-to-finance/late-payment /page37580.html

http://www.payontime.co.uk/legislation/legisla tion_main.html

http://www.is4profit.com/business-advice/finan ce-money/late-payment-invoices-2002.html

[cascarelli]

Hi Jeanette

I use the info on the site here....

http://www.payontime.co.uk/

there's a calculator that I use there to work out interest.

If they are still owing money since last august then I'd say it's well past the time to be getting serious with them. Some things you could try....

Certainly cut off any more credit to these customers.
If it falls within the Small Claims amount then I fill out a claim form and send a copy to the debtor (before sending the form off to the Court) which makes it clear that we're serious.
Keep ringing them up and hassle them.
You could also visit the customer. Its much more difficult for them face to face to make excuses.

Out of all these, sending the Claim form to them usually works for us.

As an aside, do you credit check the customers before letting them have credit. You're probably in a different business to us but if we are at all unsure we ask for money up front, or at least a percentage. We do this for most new clients.

Good luck.