[The Great One]

Hi guys

What do you put on the end of invoices about late payment, ie fines, the % etc

Many thanks

Regards

Martin

[Splashgroup]

Let them know if a cheque hasn`t arrived on day 31 that you will come along an wheel clamp their car    this makes them think a bit.

[BeeClean]

martin ive started quoting people a price verbally of say £250 and when i confirm it in writing i divide it by 90 and then times it by 100. then the quote says £277.78 but at the bottom i put 10% settlement discount for payment within 7 days. most people pay up within 7 days. some people dont but pay the extra and occassionally you get one who pays late but still takes the dicount. overall it works ok
there are always a few people who pay late whatever you do though :

[The Great One]

there is a law that states that invoices have to be paid or you can charge interest and a fine and it is this i would like to know.

Thanks

Martin

[woodman]

Hi Martin

The law you refer to is:

The Late Payment of Commercial Debts Act 2002

This act allows you to do two things

1) You can charge interest at the annual rate of 12% for each day the your invoice is overdue

2) You can make a one off compensation charge against the over due invoice again if it is late by even one day
at the following rates.

Debt Size up to £999.99 you can charge a Fine of £40.00
Debt Size up to £9,999,99 fine £70.00
Debt size up to £10,000 and above fine is £100.00

Hope this helps

Trevor

[cleanman]

Hi Martin

We use a software for our invoices is do all the work for you... let you know when a customer is late paying will write a reminder letter. its worth spending out on software.

[Just a cleaner.]

Read this about late payments

http://www.legislation.hmso.gov.uk/si/si2002/20021674.htm