PracticeConsultingLate payment help for small business

Late payment help for small business

Small businesses were today given a new set of powers to penalise other small companies who fail to pay their bills on time.

The change in the law will allow businesses with less than 50 staff to claim interest at eight per cent above base rates on unpaid bills. The Late Payment of Commercial Debts Act two years ago allowed small companies to charge big business interest on late invoices.

From today, however, cover has been extended to small firms that owe money and in another two years, companies of any size will have the right to charge interest on late bills.

Figures from the Institute of Credit Management show that recently late payment by large businesses is on the increase. It said figures for the three months to September show late payment by large businesses had increased by 11%, bringing to an end a period which had seen a distinct improvement in the perception of large firms.

Links

UK companies among best payers

Late payment problems intensify

London businesses facing cash crisis

DTI near bottom of late payment league table

Late Payment of Commercial Debts (Interest) Act 1998

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