On 16 March 2013, the Late Payment of Commercial Debts Regulations 2013 came into effect amending the scope of the Late Payment of Commercial Debts (Interest) Act 1998 adding an implied term into qualifying contracts.
How is it free?
The changes in regulation give you a statutory right, whereby you are able to claim compensation (plus interest) arising from the late payment of any commercial debt meaning that we are able to claim you interest on the money that you are owed.
This is done in the form of a fixed sum as follows:
- £40 for a debt less than £1000
- £70 for a debt between £1000 – £10,000
- £100 for a debt of £10,000 or more
(Please note the above charges are applied per invoice that make up the debt).
The fixed sum compensation amounts stated above have been retained by the Regulations.
However, the Regulations have introduced a further 'level' of compensation, this is where our free service comes in. We may now claim as compensation, any further reasonable costs which are incurred in recovering the debt (which are not met by the fixed sum). What that actually means to you is the cost of instructing us to recover the debt will be recoverable, but only if these costs are deemed as reasonable. In these circumstances we will claim back the cost of the debt recovery from the business that owes you money.
Businesses have nothing to lose. We can recover outstanding debt on your behalf and it will cost you nothing and you’ll recover the debit interest owed to you too!
If you have outstanding invoices which apply to business to business give us a call to try out our free service on 01228 713070.
Posted: July 1st, 2014