Demanding your late payment compensation

Here is the sort of the problem that arises when you try to claim late payment.

Former customer, who always paid late, despite repeated phone calls and despite of our clear terms on our invoices and statements, which stated 30days net.

I decided to send them a late payment demand, which included late payments for invoices from 2005. They had ceased to do business with me anyhow. I do think I'm entitled to compensation for late payments. Their turnover is £28m per year, mine is around £200K.

Their financial director called me, said he had sought legal advice, and that by me sending a demand for this was a mis-use of this legalisation, they would be refusing to pay me anything for late payments, and that they would defend any action taken against them. When I asked him how it was a mis-use of the legalisation, he stated he could'nt go into that.

Now take them to court or walk away ???

MMM - I think I will let the judge the decide !!

But why should so many businesses be denied their rights. Why should I not be entitled to this ? Am I wrong in seeking compensation for paying late ?

Maybe they will sit up and take notice and other suppliers will not suffer the same fate if I take action. ?

Is it just that businesses need educated about paying on time ?

He would not say how I was mis-using the legalisation, I did ask - His reply ' I would rather not say '

I sent to him on Friday a stronger demand along with a copy of the late payment legalisation.

I'm determined to take a strong stand, only on those customer's who's financial strength is alot more than mine. Not the small guy who is struggling, but those who are in the black, in profit and still refuse to pay within terms.

You are fully entitled to request payment of late payment costs and interest on any invoice in the last six years that has breached the agreed payment terms.

More businesses need to use the legislation IMHO, it is certainly something we use when we are collecting overdue accounts!