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Open ended payment date

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12 years 11 months ago #577 by jecviner
I sometimes work for an organisation providing education courses. They have always been terrible payers and I have had to chase them several times. Last time I had to threaten legal action when, for work I had completed in April, I had not been paid in July. Their terms stated the usual 'paid at the end of the month following the month when the invoice is received'. Now - I guess in response to my complaint, they have changed their terms to: 'Your claim will become due after approved receipt of the completed claim form. This is normally a minimum of 60 days.'

That sound pretty open-ended and they could refuse to pay for 90 days, or 360 days and would still be within these terms.

Can they say this? Is there actually a statutory expectation for when invoices become due?

Thanks,

John

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12 years 11 months ago #578 by David J
Replied by David J on topic Re:Open ended payment date
Hello John
It does sound pretty open-ended. The legislation does allow for 'grossly unfair terms of payment where you can go to court to challenge such terms but in reality, you are not going to do that. Agreeing acceptable terms of payment is important for both supplier and client and in your case their terms are unacceptable for you.

Firstly I would talk to them to see if you can reach an amicable agreement for terms of payment. I would also add to your invoices 'We understand and will exercise our statutory right to interest under the Late Payment of Commercial Debts (Interest) Act 1998 if we are not paid according to the agreed credit terms.' Becoming a supporter and adding the payontime logo to your invoices will not do any harm.

At least if they do not pay within any agreed terms you have the option of charging interest and compensation which could trigger a quicker response to a request for payment.

Regards

David

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12 years 11 months ago #580 by jecviner
Replied by jecviner on topic Re:Open ended payment date
Thanks David,

Yes, I told them they were grossly unfair conditions. I have written and told them that I interpret their terms as 60 days from submission of my invoice and that, if they wanted to give me an exact measure of days they could do but that silence would be considered assent. They need me more than I need them!

Have become a supporter.

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