The Late Payment of Commercial Debts (Interest) Act 1998 has two purposes. Firstly, to compensate creditors for the late payment of debts. Secondly, to deter late payment. It only applies to the commercial supply of goods and services where you don’t have a provision for interest in your Terms of Business.
You can claim compensation on all invoices paid late providing you meet the following criteria
- you have supplied goods and/or services
- your buyer bought for business purposes
- the contract is not bound by the consumer credit act
- the contract does not contain a provision for interest
The amount of compensation that you can claim is based on the value of the invoice, as per the table below:
|up to £999.99
||£40 per invoice
|£1,000 to £9,999.99
||£70 per invoice
|£10,000 and over
||£100 per invoice
In addition to the compensation, the Act allows for you to claim interest at 8% over Bank of England Base Rate (at the previous 31st December or 30th June) per annum.
You can read more about the Act, at the government’s official website, by clicking HERE.
Why should you use us?
All too often companies use suppliers as a line of credit and help prop up their failing business model. In reality, many businesses delay payments up to 120 days, whilst telling the suppliers that they would be paid within 30 days. These companies effectively keep your cash on their books by holding on to the money owed to you.
Whether you’re established or have recently set up a company, cash flow can often be a finely-tuned part of the business. We use current the UK legislation to protect your business. Statistics show a remarkable jump in late payment year on year. What is the solution?
No industry is immune to late payments. Research found four in 10 businesses struggle with late B2B payments and contrary to popular belief, the problem isn’t plaguing only small businesses (SMEs). According to the report, 63 percent of medium-sized businesses said they receive a late payment at least once a month, compared to 40 percent of small firms.
Afraid to chase late payers as you might antagonise them? Is this leading to a worrying trend of late payments? StatClaim has the solution. Don’t let persistent inconsistent payers affect your business cash flow.
We want you to concentrate on your customer opportunities and maximise profits. Help stop the increasing trend in time and money being spent chasing late payments. Our service is designed for simplicity and a future method for doing business with your customers.
How does it work?
Simply complete the claim form to confirm your authorisation. We will then email you a Welcome Pack with instructions on how to provide the details of the invoices for which you would like us to pursue a claim. Visit our Upload Centre to submit the information to us.
We will then contact each company and recover the statutory compensation amount as well as any interest that may be due.
How much does it cost?
We are able to provide this service for a fee of just 10% of the total value of any compensation and interest that we successfully recover for you and this is on a strictly ‘no win, no fee’ basis*. The Act allows for you to also reclaim the ‘reasonable costs’ associated with collecting the debt as well as the compensation and interest and so we are able to levy a small admin fee to your customer which allows us offer this comprehensive service to you at a very competitive rate.
If you have any further questions, you may find the answer in our FAQs or feel free to Contact Us
*subject to our standard terms and conditions