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help with a late payer

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11 years 10 months ago - 11 years 10 months ago #694 by mrsrosieb
help with a late payer was created by mrsrosieb
Hi, this is the first time I have used this board.

I have a commercial cleaning company which will be 3 months old on Wednesday. I am obviously new to business and a bit "green".

I have had real problems on one contract. The guy sacked me without giving the statutory 1 month notice and now will not pay his May invoice until July. This is for cleaning services from 1-31 May inclusive. The invoice was dated 1st May and should have been paid prior to May 15.

My T&C's state the following in regard to late payments



5 LATE PAYMENT
If the Client fails to make any payment the Company may terminate the Contract or suspend any Services. We will charge the Client an initial Late Payment Charge of £10 followed by the interest from the due date to the amount of actual payment. This will be at a rate of 3% per annum greater than the bank base rate. Interest accrues on a daily basis. If the Company takes legal action against the Client for breach of Contract, the Client will have to pay all fees, expenses and disbursements occurred on a full indemnity basis.


Should I charge him interest from the 15th May or from 30 days after the last date of cleaning which would be the 30th June?

Do you think my late payment conditions are OK? I think perhaps the penalties should be larger?

Please help me sort this out.

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11 years 10 months ago #698 by David J
Replied by David J on topic Re: help with a late payer
Hello Anon
The late payment legislation has a default of 30 days but this is only a guideline and does not have to be adhered to. If your late payment terms had been excepted by the company then interest would start to accrue on a daily basis the day after the debt became overdue.

The late payment legislation allows for a compensation fee of £40.00 to £100.00 depending on the size of the debt and the daily interest rate is currently 8.5% which is different from your terms. Terms and conditions including terms of payment is something we are currently focusing on and hope to implement on the site in the very near future. They are probably the most important part of any business transaction.

Regards

David

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