Connect With Our WhatsApp!
Quick Connect
Scan Our QR Code...Alternatively, Enter your number to connect...
Late Payment of Commercial Debt Regulations 2013
Statutory rights to help your business stay afloat.History
When Was This Legislation Introduced?
The Late Payment of Debt Regulations came into force on 16th March 2013 for England, Wales and Northern Ireland and on the 29th April 2013 for Scotland.Intensions
Enforcing Good Payment Practices
It was intended to bolster the protection already afforded to commercial businesses under the Payment of Commercial Debts (Interest) Act 1998 with the main aims of dissuading poor payment practices and improving cash flow for those businesses owed money for products and services already rendered.The original act came into force in 1998 with the main objective being to help small and medium sized businesses, sole trader and partnerships (under 50 employees).
It was introduction as many smaller companies were being unfairly treated by large multinational corporations persistently paying late or withholding invoice payments for an unreasonable amount of time despite goods and services already transacted.
Prior to 1998 the burden was on the Supplier to include specific terms within the initial contract or sue the debtor in a court of law to stand any chance of recuperating late payment debts.
Refactering
Adding More Flexibility & Fairer Deadlines
In 2013 The Act was amended again to allow 30 calendar days for public organisations such as Local Authorities, NHS Healthcare, Education Trusts etc when purchasing commercial goods/services and 60 calendar days when the purchaser is a private company i.e. Limited, PLC or LLP, however this can be extended if expressly agreed in the initial contract and isn't deemed to be grossly unfair to the supplier. If there is no prior agreement written then the 30 days and 60 days applies respectively.Original Problems
Removing The Unfair Nature Of Larger Businesses
If the original contract is deemed to be grossly unfair towards the supplier (creditor) in terms of unreasonable payment terms or substantially low interest payments fees then courts will revert back to the initial statutory requirements of the Late Payments Act removing the ability of a Supplier (creditor) to act unfairly outside of the original Act.
Legal Requirements
Are You Worried About Claiming For Late Fees From Your Debtors?
According to the Commercial Debt Regulations (2013), you're well within your rights to claim late fees from your late payers! If you're worried about damaging business relationships, no need to worry as Invoice Claims will do the mediating for you!Making a Claim
Should You Notify Your B2B Customer Of Your Claim?
Whilst there is no legal requirement to officially notify your business customers of your right to exercise the act in the event of late payment, it is good practice to include clear terms on your initial invoices and quotes so to prevent possibly chasing overdue invoices. We can help you with this via our Invoice Booster services.
Notify Customer
Not Required
Clear Terms
Recommended
Invoice Overdue!
46 Days Overdue!
Invoice Overdue!
41 Days Overdue!
Invoice Overdue!
33 Days Overdue!
Invoice Overdue!
24 Days Overdue!
Invoice Overdue!
11 Days Overdue!
Invoice Overdue!
4 Days Overdue!
Pursuing Late Fees
Struggling Due To Other Businesses Paying Late?
There is also no legal requirement for you to notify your customer/debtor that you intend to pursue late payment invoice fees for invoices already paid but beyond initial agreed terms (dating back 6 years) or invoices overdue and awaiting payment. We appreciate that you may not want to risk antagonising an existing business customer by applying late fees, however if your business has been severely impacted by your business customers not paying on time then it is your statutory right to be compensated.Mediating Cases
Invoice Claims Will Do All Of The Leg Work For You
We can act as intermediary's on your behalf to claim late invoice fees in a friendly and reasonable manner. Our free invoice dashboard manager allows you to organise your entire sales ledger by simply uploading all your overdue invoices dating back 6 years. We then get to work on your behalf organising and calculating overdue invoice fees and making contact with your business customers to reclaim monies rightfully owed to you. Furthermore, our services lessen the chances of future invoices being paid late and shows to your existing and prospective customers that you have a robust system in place to act as a deterrent against future potential malpractice.Invoice Claims.
You
Debtor
Our Blog
Our Latest Blog News
Latest Advice & Information on Finance and Invoicing. Finance
Aug 5, 2022
Invoice Claims.
How to climb the Invoice Hierarchy
Your business may be the best business in the world, making and selling the best products or services on the market... Finance
Aug 5, 2022
Invoice Claims.
Reduce your Invoice payment days and improve...
As the Supplier of goods and services to other businesses in the UK, you have the power to decide payment terms prior... Finance
Aug 5, 2022
Invoice Claims.
Many small business owners embarrassed by asking...
Many businesses in the UK suffer in silence when waiting on their business customers for Invoice payment. Many small business...
Get More Updates!
Subscribe to our newsletter...Invoice Claims
Tired of chasing persistently late invoice payers?
We help businesses retrieve late fees arising from overdue and unpaid B2B invoices and implement effective credit control measures to get you paid on time.
We help businesses retrieve late fees arising from overdue and unpaid B2B invoices and implement effective credit control measures to get you paid on time.
In association with
Useful links
Feel Free To Contact Us!
2024 © Passive Software. All rights reserved. VAT Reg: 456 8774 36