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Late Payments - We Can Help
Despite the solid backing of the government for eradicating late payments in the United Kingdom, many clients are reluctant to enforce late payment legislation.
The reasons for this are many and varied. Some clients worry that insisting on their rights will jeopardise the relationship with their customer. Others don’t know how to calculate the charges correctly and apply them.
At FidoHQ we can help.
We Work For You
Our experienced receivables managers are expert at talking to clients to cajole, encourage and persuade clients to pay overdue invoices. They do this professionally and civilly, so there’s no risk to client relationships moving forward. Many clients appreciate having a separate team for their finance team to speak with to resolve payment issues.
It’s recommended that you specify payment terms in each contract or your standard terms and conditions. If you don’t, the law says a payment is late if it hasn’t been received within 30 days of the invoice or goods/services being delivered.
If you specify a particular rate for late payment interest (eg “Barclays Bank Rate plus 5%”), this will apply to your agreement. Typically, the statutory interest rate is more generous so consider removing any specific late payment interest charge clauses from your standard terms and conditions.
If you're concerned about how late payment affects your business, check out FidoHQ for professional debt collection in the cloud.