What is the current statutory interest rate on late payments?

If you have clients who owe you overdue invoices, it’s important to know the current statutory interest rate on late payments, so that you can chase for payment of the full amount you are entitled to by law. There are three sums of money you can add on top of the original amount you invoiced for: • A fixed sum of £40, £70 or £100 depending on the amount owed.… Read More

Building a credit control procedures flowchart

Drawing up a credit control procedures flowchart is a great way to visualise each stage of the process, and understand better where you should place more focus, and how this will benefit your business. Like credit control itself, you should recognise the full range of procedures used – from the first contact with a new client, to regular updates on existing client accounts.… Read More

Where should I include payment terms on an invoice?

As we always say, it’s important to agree any specific terms and conditions upfront – you can’t just put new payment terms on an invoice and assume that they will immediately become legally binding. But assuming you set out your terms and conditions from the outset, then it is a perfectly good idea to include the most important of those payment terms on an invoice when you send it out to the customer.… Read More

Best practice for credit control chase letters

Anyone who’s been in business for more than a matter of months is likely to have faced a late payment on at least one occasion, and as time goes on, it’s an obstacle you have to get used to overcoming. Effective credit control can flag up the high-risk customers, as well as setting sensible credit limits on each customer’s account, but even so, sometimes an invoice will genuinely go astray or a client will be facing a cash flow problem of their own, and decide that you are the bill they will try not to pay.… Read More