Suppliers advised to claim due compensation for late payments
Latest figures from a commercial
debt recovery law firm has revealed the scale of debt UK businesses are
dealing with due to late payments. Research also shows that suppliers
are bank rolling their customers for an average of 103 days from when
the invoice is issued to before they threaten legal action with a Letter
Before Action (LBA).
This amount of days shows a 24% increase
from 83 days when compared to Q1 in 2014 to Q1in 2015. As a result, many
have argued that although high profile campaigns have increased to try
and tackle this issue, late payments in the UK are only getting worse.
Although
the business industry on the whole improves, it seems that many UK
businesses are unwilling to 'rock' any existing client relationships by
threatening legal actions. However it is likely that their invoices will
simply fall to the bottom of an unpaid pile and forgotten. Therefore
it is essential for businesses to act early on overdue invoices. In
order to fight late payers, businesses should claim their right to
compensation. The Late Payment Act allows businesses who have been paid
late to claim interest for the period the debt was overdue, plus
compensation.
Businesses are entitled to claim interest and
compensation remains for 6 years on each and every invoice paid late,
unless clear assent is proven against the claimant. Many businesses
utilise the Late Payment Act in order to take on late payers, recovering
significant sums to compensate them for the administrative and legal
costs they have incurred chasing late payment.
If you are a
business suffering from poor cash-flow and unpaid invoices Positive
Collections can help you. Positive Collections provides a FREE online
credit control system to help you streamline and manage your invoices
more efficiently. Our debt recovery service is an effective 3 step
solution to ensure that you receive any monies owed.
To find out more about how Positive Collections can help you simply visit us online at www.positivecollections.co.uk or call us on 0208 313 7887.
No comments:
Post a Comment