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Terms and Conditions on Late Payment statement

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10 years 4 months ago #1083 by spiltMILK3D
Hi,
I have searched for the following in the forum and nothing came up that seemed relevant, so apologies if this has been covered elsewhere.
I am preparing a Late Payment Statement for a client that has not paid an Invoice and so I am considering what Terms and Conditions to apply as I do not wish to wait another 14 days for payment (which is our typical Invoice T&Cs). Am I within my rights to apply an "Immediate Payment by BACS on receipt of the Statement" OR should one give a 07 day reprieve.

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10 years 4 months ago #1084 by Safe_UK
Hi :)

If the original invoice is overdue, you *do not* need to provide further credit for the late payment costs and interest.

But be aware, generally a statement is viewed as just that, a statement of account. Most businesses don't see a statement as a demand for payment.

Have you thought about issuing a late payment letter outlining the charges with the words:

IMMEDIATE PAYMENT REQUIRED

Emblazoned across the top?

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10 years 4 months ago #1085 by john@termsandconditions.co.uk
Hi there

You can use your statement of account to reinforce the contract terms and conditions that applied when you started work. Simply apply these to the back of your statement. On the front of the statement, outline how many days payment is overdue (i.e. days beyond your 14 day payment terms) and that you require payment ASAP/ By Return.

Beware of being too 'heavy-handed' when chasing for payment initially to avoid damaging your business relationship. But be prepared to become more assertive as time passes.

Follow this up with a soft letter and then a harder letter at 3/5/7 day intervals until you receive payment.

Best Regards
John Hackwood
TermsandConditions.co.uk Ltd

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10 years 3 months ago #1097 by spiltMILK3D
Thanks for the information - the tactics worked:

We got paid after a series of emails stating that there was an unpaid Invoice and attaching that Invoice and Account Statements.

These started off being one week apart and became subsequently more frequent. Just sent the same information again and again, and just before issuing a Late Payment Notice with Interest and Administration Costs the client paid. What luck.

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10 years 3 months ago #1098 by spiltMILK3D
We are now in the process of sending the (ex)client an Invoice for the Late Payment and stating the Statutory Rights which are on our Invoice T&Cs.
However, having read the forums on Late Payments I am still a little confused as to how much administration costs we can legally invoice for. It has taken me many hours looking into this and so can I bill the client for this under Admin Costs?

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10 years 3 months ago #1099 by spiltMILK3D
payontime.co.uk/late-payment-legislation-interest-calculators

On the above page it states:
"After 16 March 2013 additional fees can be claimed if the costs of recovery are not met by the compensation."

In some cases that I have read these Additional Fees are for Recovery Costs for the use of Solicitors / Bailiffs.

Are we legally entitled to Invoice for Administration Costs incurred for our own time above the Statutory Recovery Costs Compensation (SI 2002/1674)?

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