Yes, you can choose to pursue the claim yourself. However, it can be both complicated and time-consuming and our service is very competitively priced.

We charge a fee of just 10% of the total value of the compensation and interest. This is on a strictly ‘no win, no fee’ basis, subject to our standard terms and conditions.

If you have a clause relating to late payment in your terms and conditions, you must charge compensation in line with the amount stated. If not you are able to charge compensation as specified by the Late Payment of Commercial Debts (Interest) Act 1998.

The amount of compensation you can claim is:

Invoice Amount
 Compensation
Up to £999.99 £40 per invoice
£1,000 – £9,999.99 £70 per invoice
Over £10,000.00 £100 per invoice

 

Interest is normally payable from the end of the agreed credit period.

If no credit period was agreed, interest is payable 30 days from the later of:

•  the date of supply, or
•  the date the buyer was told the amount due
•  the conclusion of any procedure for checking that 
•  the goods conform to the contract (and the procedure itself cannot take more than 30 days)

If you have a clause relating to late payment interest in your terms and conditions, you must charge interest in line with the amount stated.

If not, you are able to use the Late Payment of Commercial Debts (Interest) Act 1998 and claim interest at 8% over Bank of England Base Rate (at the previous 31st December or 30th June) per annum.

You can claim interest on invoices that were not paid within the credit period but have since been paid. Interest can be claimed for the period starting with the date the invoice should have been paid and ending with the date it was actually paid.

You have up to 6 years to claim the interest.

Your Case Manager will work this out for you when you submit instructions for us to send a Late Payment Demand.

To work out interest, follow this example:

•  Your business is owed £5000 and the Bank of England base rate is 0.25%.
•  The annual statutory interest on this would be £412.50 (5,000 x 0.0825 = £412.50)
•  The daily interest would be £1.13 (£412.50 / 365 = £1.13)
•  Multiply the daily interest by the number of days the payment is overdue by to calculate exactly how much is owed.
Then add on the relevant compensation figure, depending on the amount of the invoice.

You can claim interest and compensation on invoices that were not paid within the credit period but have since been paid. Interest can be claimed for the period starting with the date the invoice should have been paid and ending with the date it was actually paid.

You have up to 6 years to claim the interest and compensation.

No. The Act applies to commercial debts and so we only provide this service to corporate entities.

No, you have no obligation to tell your customers that you will claim Late Payment interest, compensation or costs if they fail to pay on time.