Latest figures from a commercial debt recovery law firm has revealed the scale of debt UK businesses are dealing with due to late payments. Research also shows that suppliers are bank rolling their customers for an average of 103 days from when the invoice is issued to before they threaten legal action with a Letter Before Action (LBA).
This amount of days shows a 24% increase from 83 days when compared to Q1 in 2014 to Q1in 2015. As a result, many have argued that although high profile campaigns have increased to try and tackle this issue, late payments in the UK are only getting worse.
Although the business industry on the whole improves, it seems that many UK businesses are unwilling to ‘rock’ any existing client relationships by threatening legal actions. However it is likely that their invoices will simply fall to the bottom of an unpaid pile and forgotten. Therefore it is essential for businesses to act early on overdue invoices. In order to fight late payers, businesses should claim their right to compensation. The Late Payment Act allows businesses who have been paid late to claim interest for the period the debt was overdue, plus compensation.
Businesses are entitled to claim interest and compensation remains for 6 years on each and every invoice paid late, unless clear assent is proven against the claimant. Many businesses utilise the Late Payment Act in order to take on late payers, recovering significant sums to compensate them for the administrative and legal costs they have incurred chasing late payment.
If you are a business suffering from poor cash-flow and unpaid invoices Positive Collections can help you. Positive Collections provides a FREE online credit control system to help you streamline and manage your invoices more efficiently. Our debt recovery service is an effective 3 step solution to ensure that you receive any monies owed.
To find out more about how Positive Collections can help you simply visit us online at www.positivecollections.co.uk or call us on 0208 313 7887.