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UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: gwrightson on October 01, 2009, 12:23:08 pm

Title: adding interest to invoice.
Post by: gwrightson on October 01, 2009, 12:23:08 pm: Does anybody know the legalities regarding the adding of interest to a bill?

Such as , how much can be added? From what date ? etc, etc.

I have a slow payer , I should say a non payer and after numerous e mails, reminders and phone calls that get ignored with excuses like . She is out at the moment, Not in today, will phone you back and the like.

The amount is for £1,100 , but I now wish to start adding .
Geoff
Title: Re: adding interest to invoice.
Post by: Joe H on October 01, 2009, 12:41:53 pm: What was in your originally terms?

This may help
http://www.theanswerbank.co.uk/thread/?ctgalias=Business-and-Finance/Business&question_id=634269
Title: Re: adding interest to invoice.
Post by: gwrightson on October 01, 2009, 01:13:36 pm: My terms on the invoice Joe, were Payment within 28 days unless prieviously agreed otherwise,

a discount of 5% is offered if payment in full is recieved within 7 days.

I will take a look at your link.

geoff
Title: Re: adding interest to invoice.
Post by: Peter Sweeney on October 01, 2009, 02:00:35 pm: Geoff,

You can add 0.0022 % per day. This is what the courts allow for.

Pete
Title: Re: adding interest to invoice.
Post by: gwrightson on October 01, 2009, 02:08:09 pm: Thanks pete,

Thats what I was looking for ;D some people have been telling me i can add what i like plus a £70 charge!!!!!! 0.0022% per day :( doesnt seem much ,

never mind it may do the trick.

geoff
Title: Re: adding interest to invoice.
Post by: Peter Sweeney on October 01, 2009, 03:06:09 pm: Know what you mean Geoff but thats still £217.80 extra on 90 days. Might be enough if you could warn that you are entitled to that if not paid asap.

Pete
Title: Re: adding interest to invoice.
Post by: Joe H on October 01, 2009, 03:52:38 pm: The link I found is interesting, Geoff.
Compensation basically is 8% + the bank base rate (listed as .5%)
However, it does say, on a link from my link, that this is only for business to business transactions and not individuals.
With the amount being £1100 I presume this is a business transaction (maybe not).
Something in there also saying you may also be liable for "compensation" of £70 as the total is over £1000 (£40 if up to £1000).
Title: Re: adding interest to invoice.
Post by: gwrightson on October 02, 2009, 08:28:47 am: Yes it is a business to business Joe,

Pete, how did you arrive at £217.80 ? I am assuming that the interest goes on daily is this correct?

Geoff
Title: Re: adding interest to invoice.
Post by: GWCS on October 02, 2009, 12:43:55 pm: You may find these links interesting

http://www.payontime.co.uk/index.html

http://www.thomashiggins.com/index.html

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=b&r.l1=1073858790&r.lc=en&r.l3=1074002362&r.l2=1074453392&topicId=1074453392&r.i=1080465779&r.t=BLTTOOL
Title: Re: adding interest to invoice.
Post by: mk1 on October 02, 2009, 03:41:56 pm: PAYMENT IN FULL IS DUE WITHIN 14 DAYS FROM INVOICE DATE. WE RESERVE THE RIGHT TO CLAIM STATUTORY INTEREST AT 8 % ABOVE THE BANK OF ENGLAND BASE RATE AT THE DATE THE DEBT BECOMES OVERDUE IN ACCORDANCE WITH THE LATE PAYMENT OF COMMERCIAL DEBTS. (INTEREST ACT 1998)

thats on all my invoices and used
Title: Re: adding interest to invoice.
Post by: gwrightson on October 02, 2009, 04:16:48 pm: I sent a mail a little earlier today explaining that I would be adding interest and have now received payment in full via BACS.

Geoff
Title: Re: adding interest to invoice.
Post by: GWCS on October 02, 2009, 05:17:29 pm: Quote from: gwrightson on October 02, 2009, 04:16:48 pm
I sent a mail a little earlier today explaining that I would be adding interest and have now received payment in full via BACS.

Geoff

Geoff, learn from this, make sure your payment terms are always displayed. And look into how to prevent this via the links i given.

It amazing how quick people pay up when you advise late payments fee's will be added due to late payment and legal action if full payment and late fees are not paid within a set date...
Title: Re: adding interest to invoice.
Post by: clinton on October 02, 2009, 05:25:23 pm: Going to do this myself and make sure the terms are clear to see just in case as its one of these things that niggle you ::)
Title: Re: adding interest to invoice.
Post by: Peter Sweeney on October 02, 2009, 06:48:57 pm: Yes Geoff, thats the daily interest amount
Title: Re: adding interest to invoice.
Post by: robert meldrum on October 02, 2009, 07:40:58 pm: Compounding !!!!!!!!!!!!