MEASURES TO COMBAT LATE
PAYMENT OF COMMERCIAL DEBT
Did you know that since 2002 firms who are owed money will be able to claim up to
£100 in debt recovery costs for each overdue bill, on top of claiming interest on the
amount owed?

An estimated £17 billion is owed Size of unpaid debt Set fee to be paid to
to small businesses at any one
creditor per 6 months
time – £6.8 billion of that paid late
– while other research has indi- Below £1000 £40
cated that approximately 10,000
UK businesses fail each year as a £1000-£9999.99 £70
consequence of late payment.

£10,000 and above £100


Source: www.payontime.co.uk

The act allows:

• a simpler calculation of the interest rate
for late payment by fixing the rate for a
six-month period – rather than the
present monthly fluctuation

• representative bodies to
challenge in court grossly unfair
contractual terms on behalf of small
businesses

• extending the late payment legislation
to include businesses of all sizes and
the public sector – at present only small
firms can claim interest on debt

A guide to help businesses benefit from
the new legislation has been published.

Entitled ‘A User’s Guide to Late Payment
Legislation’, it is available by telephoning
0870 150 2500 or can be downloaded
from the Better Payment Practice Group
website at www.payontime.co.uk

Do you have a story or news that affects
business. Then why not send it to
articles@biz-mag.co.uk and if published
we will attribute the source to you.

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98