How To Deal With Late Payment Of Commercial Debts

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How To Deal With Late Payment Of Commercial Debts

It is no secret that businesses of all sizes in Sheffield experience the issue of non-paying clients every year.

This is a mundane occurrence in daily business dealings which must be stopped to not affect cash flow.

Cash flow is the lifeblood of any business and if this is not stable, it can obviously threaten its longevity.

Most businesses will have a credit control team that can chase up any late payments the organisation receives.

Small and medium sized businesses may not have the resources required to undertake this.

This may result in having to choose between recovering money owed or making more money.

It is clear that all organisations need a solution to an issue that has shown no signs of stopping.

There are methods that a business can take if they are overwhelmed by missed payments.

We have put together this article that focuses on how to deal with the late payment of commercial debts.

dealing with late payment of commercial debts

Late Payment Of Commercial Debts – Prevention

Precautions can be put in place to prevent late payment of commercial debts from occurring.

Payment Terms

Payment terms can be implemented into works contracts to ensure that payment dates are not missed.

These contracts are to be signed by both parties and document any costs, payment dates and any terms and conditions.

These usually state that payment should be made 30 days, 60 days or 90 days after the invoice date.

The amount of time is dictated by the strength of the relationship with the client.

Adding Interest On Any Late Payments

The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to claim interest on overdue payments. This extends to England, Scotland and Northern Ireland.

The statutory interest rate that can be charged is the Bank of England base rate plus 8%.

To charge interest on top of any late payment is one of the better payment practices to use.

The threat of being charged more than is already owed is usually enough to get the debtor to pay.

However, some debtors may simply ignore this and still refuse to pay the higher cost.

If there is no payment forthcoming, further steps need to be taken to recover the late payment.

Late Payment Of Commercial Debts – Sheffield

Have Any Questions? Get In Contact With Our Experts Now!

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

Late Payment Of Commercial Debts – Recovery

If goods and services are provided to someone, it is grossly unfair to the supplier if they are not paid.

When money is owed by businesses and public authority figures cannot help, you need to take action.

The solution for recovering the late payment of commercial debt is by using a professional agency.

At Debt Collection Sheffield, we provide the easiest way for our clients to find the best agencies.

Our partners provide industry-leading success rates of up to 90% on all undisputed debts.

The service they provide is specifically designed to maximise results whilst minimising costs.

If you are owed money by a business, we can refer you to the most effective debt collection agency.

Our recommendation for these requirements is Federal Management, which is the UK’s leading commercial debt collection agency.

Since 2004, they have recovered millions of pounds worth of commercial debts yearly on behalf of their clients.

They are authorised and regulated by the Financial Conduct Authority (FCA) to recover debts under the Consumer Credit Act.

Late Payment Of Commercial Debts – Sheffield

Have Any Questions? Get In Contact With Our Experts Now!

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

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