When to instruct Collection House?
And what about late payment fees?
When should you instruct a debt recovery agent? Statistically, the longer an invoice goes unpaid the harder it becomes to collect.
If you have an overdue debt and you’ve made numerous efforts to secure payment, such as sending invoice reminders and making telephone calls, and yet the invoice is still unpaid, then then the sooner you instruct Collection House, the better.
As every business is different it’s up to you to decide which invoices will best benefit from our assistance. These could be invoices of particularly high value, invoices that belong to a customer you simply cannot track down or maybe one with multiple invoices outstanding.
By instructing Collection House you can focus your business resources on other areas, such as newer invoices, or on other areas such as marketing.
So, what about late payment fees?
Under the Late Payment of Commercial Debts (Interest) Act 1998 (as amended), you are entitled to claim compensation and interest at 8% above the Bank of England's base rate on each of your late paid invoices. However, if you have a clause relating to late payment interest in your terms and conditions, you must charge any interest to be in line with that amount.
So, how do late payment fees work under the legislation? You are able to claim statutory interest which is 8% plus the current Bank of England base rate. In addition to interest, you can also claim compensation under The Late Payment of Commercial Debts Regulations 2013 to help recover “reasonable debt recovery costs”.
The amount of compensation you can claim under the Act is:
· For invoices or debts up to £999.99, you can claim £40 per invoice
· For invoices or debts between £1,000 - £9,999.99, you can claim £70 per invoice
· For invoices or debts over £10,000.00, you can claim £100 per invoice
Collection House operate on a NO WIN NO FEE basis for uncontested debts. We have been collecting late payment fees for our clients for years and unlike other debt recovery agencies, we pass all late payment fees collected to you, our client.
It’s easy to instruct us: call us on 01225 01225 762044, instruct us online or email us at response@collectionhouse.co.uk
