Statutory interest on late commercial debts
On a qualifying business-to-business contract, the Late Payment of Commercial Debts (Interest) Act 1998 can give you statutory interest when an invoice is paid late. The usual rate is 8% above the Bank of England base rate.
Interest is a right where the Act applies, not a collection guarantee. Confirm when the invoice is legally late before adding figures to a demand or letter before action.
What you can usually claim
- Simple statutory interest at 8% plus Bank of England base rate
- Fixed late payment compensation of £40, £70 or £100
- Reasonable justified recovery costs
Adding interest does not collect the invoice
If reminders have failed, upload the unpaid invoice. A partner can demand principal, interest and compensation. Partners usually work on a fixed percentage / commission, often no collection, no fee. We introduce the file; recovery is not guaranteed.