As a Commercial Debt Recovery Firm our aim is to ensure that we do our best for our Clients.

Often when a company instructs us to collect their overdue invoices and we see their Terms and Conditions (if they have any) it is obvious that their Terms of Business have been copied from a generic template.

In many cases this may work for our Client but there are a number of areas that should be looked at to ensure your Terms work for you.

In brief, two areas that can be addressed quite simply are:-

You can Claim interest on your overdue invoices

A fixed interest rate claimable would normally be a ‘good bet’.

However we are not in normal times and the interest rate on many of our Client’s Terms does not work in their favour.

The Late Payment of Commercial Debts (Interest) Act 1998 is an Act of the United Kingdom Parliament enabling businesses to charge other business customers interest on overdue accounts AND to obtain compensation.

The ‘statutory interest’ rate chargeable is the Bank of England base rate plus 8%.

With interest rates soaring, from 1st January 2023 it is possible to claim the 8% plus Bank of England base rate which is currently at 3.5% meaning you can claim 11.5% interest on your overdue debts.

In addition you can claim compensation of

£40.00 for every invoice up to £999.00

£70.00 for every invoice over £1,000.00 and up to £9,999.00

£100.00 for every invoice over £10,000.00.

On top of this you are also able to claim reasonable legal costs for instructing us to pursue your debts.

Check your Terms and Conditions NOW!!

Once you are happy that you can claim the best interest on your overdue debts make sure your Terms are Incorporated.

Incorporation of your Terms

Incorporation of terms in English Law is the inclusion of terms in contracts in such a way that the Courts recognise them as enforceable.

For terms to be considered valid they must fulfil three requirements:-

  • Notice of the terms should be given before or during the agreement of the contract
  • The terms must be found in a document that is intended to be contractual
  • ‘Reasonable steps’ must be taken to bring them to the attention of the other party

These are quite simple steps that businesses can address themselves, however if you would like assistance regarding the above or just feel that your businesses Terms could do with a New Year overhaul please get in touch ….

Leave your Debts in our Capable Hands

All articles posted on the Lane and Co website are intended for information purposes only and do not represent legal advice on which reliance should be placed. Visitors to the website are hereby placed under notice that they should take appropriate steps to verify such information. No visitor should act or refrain from acting on the information contained in any article without first verifying the information and as necessary obtaining legal and/or professional advice.