Late Payment Threads

Here’s something that the bad payers should consider:

If someone carries out 3 jobs a week for you over a 1 year period, invoices you for each job on a separate invoice and you pay each invoice just a day or two later than the agreed terms, by the end of the year you will owe them at least £6,240 in late payment charges. All they have to do is show, ‘in the balance of probability’, that the invoices were received by you and were paid outside the agreed terms, or later than 30 days from invoice if there were no agreed terms. There is no way of contesting the late payment charges unless you can satisfy a judge that you didn’t receive the invoices.

All the people who’ve been bad payers in the past should also note that the late payment charges are treated like any other debts and can be claimed in court for up to 6 years.

Slightly more worrying (for some) is that if a limited company goes bust the liquidator has a duty to recover as much money as possible for the creditors. So even if your mate at XYZ Ltd would never have dreamt of charging you late payment charges you could still end up with a bill for thousands of pounds from the liquidator if his company went bust.

So pay your bills before they become overdue or at least make sure that you treat all the suppliers you’ve had for the last 6 years so well that they stand to make more from continuing to supply you than they could pottentially make from all those late payment charges.

Posted under Courier Financial Issues, Late Payment, Legal Issues, Uncategorized

Posted by Alec at 6:38 pm, September 4, 2006

1 Comment so far

  1. Since you’re entitled to the late payment charge on the date the invoice becomes overdue they’d need to advise you of the dispute before that date. Presumably your T&C also give a set time during which invoice queries need to be raised? Even if their dispute was valid and raised at the appropriate time the late payment charge would still be due if they failed to pay the undisputed part of the invoice within 30 days or agreed terms.

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