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Bucks firms urged to use little-known debt laws

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Bucks Business First is advising county firms to take advantage of a little-known act of parliament when they are not being paid on time.

More than £30billion is owed to UK businesses, according to the payments company Bacs.

But the Late Payment of Commercial Debts (Interest Act) 1998 allows business owners to take action if their customers fail to pay their bills on time. However, many owners fail to go down this route.

The act also allows firms to charge interest of 8.5 per cent on late payments, and also to claim compensation of up to £100, depending on the amount of the invoice.

Bacs says large companies are usually the worst offenders when it comes to making late payments.

Bucks Business First advises firms wanting to know more about late payments to speak to an accountant or contact a debt recovery agency.


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