I have a client who has an invoice outstanding from 31 October. I realise that it's not overdue by a great deal but as this was their first invoice with us and they now have two more open I'd like to issue a late payment penalty invoice to encourage them to pay and to show that we won't put up with their lax systems.
Our contract with them states that we will charge interest on all late payments at a rate of 3% per annum above base lending rate (at Barclays). How do I calculate this on an outstanding debt of £1800?
There are a number of solutions to this problem if you are in the UK. One is that we offer a no-win no-fee legal solution where we will take to court businesses who pay you late if you are a business of any size. The average we recover is now of the order of £20000 .This is made up of the fact that you are due recover at least 8.5% interest and damages of up to £100 on every single invoice that was paid late. Even if it was paid .Your filing cabinets may be full of this money that we could recover and you could treat this as new capital in your business If you would like to know more please contact me james@businessdisputemediation.co.uk in confidence
