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The late payment of commercial debts

In November 1998, the UK Government introduced legislation to give businesses a statutory right to claim interest from other businesses for the late payment of commercial debt. The UK was one of the first countries in the EU to introduce late payment legislation to help promote a culture of prompt payment. View the late payment information on the Gov website.

On 7 August 2002, the Late Payment of Commercial Debts (Interest) Act 1998 was amended so all business owners and managers could claim reasonable debt recovery costs and can benefit from the simplification of the calculation of Statutory Interest. Additionally small and medium sized enterprises could ask a representative body to challenge grossly unfair contract terms used by their customers which do not provide a substantial remedy for late payment of commercial debts. View the late payment interest information on the gov website.

On 16 March 2013 further amendments were made to the existing legislation requiring private businesses to pay within 60 days and public businesses within 30 days. Additional fees could also be charged for recovery and plus other changes. Click here for the documentation relating to the changes on the gov website.

The compensation table below remains the same. After 16 March 2013 additional fees can be claimed if the costs of recovery are not met by the compensation. This does not apply to contracts concluded before 16 march 2013

The compensation entitlement varies in accordance with the size of the debt:
Size of unpaid debt Sum to be paid to the creditor
Up to £999.99 £40.00
£1,000.00 to £9,999.99 £70.00
£10,000.00 or more £100.00

Use our Late Payment Calculator to see how much interest and compensation you can add to a late payment.

We charge you 5% of the total amount recovered. The debtor will pay you directly into your bank and we will bill you seperately for the service. We only charge on successfull collections. If they dont pay, you dont pay!

Please contact us to discuss any of our services.

business debt recovery

business debt recovery

Business Debt Recovery

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Our Services Include

  • Late Payment Demand Letter
  • Credit Checking and Customer Tracing
  • Late Payment Calculator
  • Sales Ledger Audit
  • Experian credit risk
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