Late Payment Of Commercial Debts: The Law & Your Rights

Summary

The Late Payment of Commercial Debts (Interest) 1998 Act serves two main purposes: 1. To compensate creditors for the late payment of debts 2. To discourage late payment practices. It applies to the commercial supply of goods and services where there is no provision for interest in the Terms of Business. In this article, we will explore the Late Payment of Commercial Debts (Interest) Act 1998, including the main purposes of the Act, what you can claim for late payment of commercial debts, when you can claim late payment, interest, and costs, and time limits for making such claims. You can claim late payment interest, compensation, and costs if you have supplied goods or services to another business and your invoices were not paid within the credit period. You can’t claim if the contract involves consumers or certain contracts such as consumer credit agreements or contracts involving mortgages, pledges, charges, or other securities. Additionally, contracts of service or apprenticeship, like employment agreements, are not considered contracts for the supply of goods or services under this Act. Interest is typically payable from the end of the agreed credit period. Or, if no credit.

Key information

• •The date the buyer was informed of the amount due, or
• •The completion of any procedure for verifying that the goods conform to the contract (which can’t exceed 30 days)
• •For invoices up to £999.99, you can claim £40 per invoice
• •For invoices between £1,000 and £9,999.99, you can claim £70 per invoice
• •For invoices over £10,000, you can claim £100 per invoice.
• •The Late Payment of Commercial Debts (Interest) 1998 Act serves two main purposes:
• •1. To compensate creditors for the late payment of debts 2. To discourage late payment practices.
• •It applies to the commercial supply of goods and services where there is no provision for interest in the Terms of Business.
• •In this article, we will explore the Late Payment of Commercial Debts (Interest) Act 1998, including the main purposes of the Act, what you can claim for late payment of commercial debts, when you can claim late payment, interest, and costs, and time limits for making such claims.
• •You can claim late payment interest, compensation, and costs if you have supplied goods or services to another business and your invoices were not paid within the credit period.
• •You can’t claim if the contract involves consumers or certain contracts such as consumer credit agreements or contracts involving mortgages, pledges, charges, or other securities. Additionally, contracts of service or apprenticeship, like employment agreements, are not considered contracts for the supply of goods or services under this Act.
• •Interest is typically payable from the end of the agreed credit period. Or, if no credit period is agreed, interest is payable 30 days from:

Practical guidance

• •Source: [Late Payment Of Commercial Debts: The Law & Your Rights](https://lawhive.co.uk/knowledge-hub/commercial/late-payment-of-commercial-debts-law)

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