If a time for payment has not been stated in a contract, statutory interest will start to run on outstanding payments from 30 days after an invoice has been sent, and on the proviso the goods and/or services being received.
In a commercial contract however, the parties can agree a payment date of 60 days, and if this is agreed, this will only be valid if the extension is not “grossly unfair” to you the supplier. This 60 day payment period therefore must be expressly agreed between the parties.
Further to recovering your outstanding invoices, businesses can now also claim compensation on any “reasonable” costs incurred in recovering the debt that exceeds the fixed sum. In addition to this a statutory rate of interest, which remains at the 8% over the Bank of England base rate, is also payable on commercial debts.