The Better Payment Practice Group has launched a campaign to encourage small businesses to charge late payers interest.
The second stage of the Late Payment of Commercial Debts (Interest) 1998 Act comes into force on 1 November and allows small companies to take action against other small firms as well as against the public sector and big business.
BPPG, which represents both public and private sectors, is urging companies to find out full details of the new powers. It has also set out a three-point plan to show companies how easy it is to use this right.
1. Get a copy of the group’s free guide to the legislation by visiting www.payontime.co.uk or phoning 0870 150 2500.
2. State clearly on all written communications, credit forms, order confirmations and invoices that you understand your statutory rights to interest on late payments and will use them 3. Claim interest.
Nick Goulding, member of the BPPG representing the Forum of Private Business, comments: “Small businesses should start preparing now. The legislation is an important tool in credit management. Far too few firms actively control the trade credit they issue let alone effectively collect the debt.”
