30 Days Payment Terms
Ensure you have included in your terms and conditions, payment terms to all your customers stating how many days payment is due from the invoice date.
Typically, 30 days is given as payment terms and conditions. So an invoice raised/dated on the 10th January 2016 is due to be paid before the 10th February 2016.
UK Late Payment Legislation states that if payment is not recieved by the due date, then you are legally within your rights to charge the customer interest and compensation.
Use the Late Payment Calculator to calculate how much you can charge the customer in Interest and Compensation.
We would also advise to include the exact due date on any invoices and also states ‘payment due within x days, from invoice date as per our agreed terms’.
If the customer is a long standing customer of yours, it is probably not wise to charge Interest and Compensation if they fail to pay within the payment terms, especially if you want to do future business with again.