Interest on Late Payments
All businesses have a legal right to claim interest from late-paying customers.
The statutory right to interest, introduced under the Late Payment of Commercial Debts (Interest) Act 1998, applies to all contracts agreed after 7 August 2002. Late payments create cashflow problems and expose businesses to the risk that they will not be paid.
This briefing covers:
- Who can charge interest on late payments.
- How to decide whether or not to claim statutory interest.
- How to calculate how much interest to charge.
- How to claim what you are entitled to.
