Late Payment Again..

If terms weren’t agreed before the job was carried out then payment is due on demand, although there’s very little a supplier could do to force payment before 30 days.

After 30 days the supplier has the option of issuing a late payment charge of between £40 and £100. A week or so later the supplier has the option of issuing a claim against the customer – costing the customer a minimum of an extra £70 or so.

There’s also the option for the supplier to wait up to 6 years and then bill the customer for 6 years worth of accumulated late payment charges, one charge for each overdue invoice. 3 late invoices per week means an accumulated bill of £12,000 over a 6 year period.

Posted under Courier Financial Issues, Late Payment, Legal Issues

Posted by Alec at 11:31 am, July 31, 2007

2 Comments so far

  1. Alec added on  August 1st, 2007 at 08:01

    Fair point, but it strikes me that a business that is being ‘named and shamed’ for not paying its suppliers on time is unlikely to have access to the £30k+ that they’re likely to be required to pay into court as security against costs before an action for defamation could commence. Neither are they likely to have access to the further £30k+ that their own legal representatives are likely to require before the case got to court.

    Does anyone really think that going on holiday for three weeks is a reasonable excuse for not paying a supplier on time? If you pay your mortgage, credit card or VAT bill late do they waive any penalties if you tell them that you were on holiday?

  2. Alec added on  August 1st, 2007 at 09:11

    I’d have said it was fairly obvious that the supplier hadn’t offered terms of 30 days EOM to their customer.

    It’s also quite unlikely that payment would have arrived between 8.50pm and midnight.

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