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Late Invoice Payment Demand

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Claim statutory compensation for invoices dating back up to 6 years.

Despite legislation first being introduced in 1998 under the Late Payments Act, many SME's are still completely unware of statutory compensation they are entitled to for commercial Invoices paid late or beyond agreed terms.

 

A common mistake made by many UK micro and small businesses is not asserting their payment terms prior to commencing work which often goes unchecked until payment becomes overdue. Despite 30 days being the standard number of days to pay a commercial invoice, many business wait until after 30 days to chase payment and then wait further patiently as their overdue invoice makes it's way to the top of accounts receivable, never really challenging their business customer by using available Legislation specifically written to help them in these matters.

The Late Payments Act 1998 later changed to the Commercial Late Payments Act 2013 enables the supplier to charge statutory late compensation fees, Interest (8% + Bank of England Interest Reference Rate) and reasonable administrate costs associated with each late paid invoice. 

Despite this legislation existing for over 20 years it has been a well kept secret and many small businesses are completely unaware of it's existence and the power it provides to small businesses with limited resources chasing invoice payment.

And for those businesses which are aware of the legislation often shy away from exercising their statutory rights out of risk of embarrassment or ridicule by larger customers telling them to "stick it" or simply ignoring them.

 

Yet UK legislation under the Commercial Late Payments Act 2013 is on your side and if there has been no prior agreement or contract put in place then statutory terms apply and your business customer is required to pay late fees, compensation and Interest on overdue invoices. Even if you may have agreed to a lesser interest amount or compensation fee within in contract, in the event your business customer does pay late, you may not have to adhere to these terms if they are deemed unfair and/or below the statutory legislation.

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However, there is a process to follow when claiming late invoice demand fees in order to ensure claims are not void.

Invoicey can automate the entire process so there is no need for your to go through the hassle of requesting compensation for late paid invoices or having a claim voided. Simply upload any late or unpaid invoice onto our free Invoice ledger and our custom dashboard will calculate fees you could potentially be owed per invoice.

We then organise these invoices per each business customer and rank them based on number of days late. We begin by sending a formal late payment Invoice demand for the original outstanding amount plus added Late fees as per the legislation. We then set these emails and timed intervals which eventually escalate to a Letter before action "LBA" if there is still no payment made by your customer. We can also follow up with SMS messages, make telephone calls and send reminders via Whatsapp Business in an attempt to recover the debt before any additional action is necessary.

Automated billing function sends invoices immediately without delay.

Checks for discrepancies to ensure no overlooked issue causes a huge delay

Receive alerts and notifications of customer activity 

View demand letters and emails plus call logs and report follow-ups.

Analyse statistics and data reports on customer payment performance.

Late Invoice Demand

A Late Invoice Demand is Generated per each Overdue or Late Paid Invoice. This is essentially attached to the original invoice via our unique payment table which is available to the customer and debtor via a link which they can open in any one of the reminder emails, SMS texts or Whatsapp messages we send. 

The Table consists of the digital Late Invoice demand and original Invoice which can be paid directly using our automated payment checkout feature via Stripe. Both amounts are considered one debt essentially and so have to be paid in order for the debt to be completely cleared. If only the original balance is paid then the Late Invoice Demand remains due and accrues daily interest until payment is finalised. 

The Late Invoice demand also updates automatically allowing the customer or debtor to only make payment for the latest amount due to take into account accruing interest and any added admin fees meaning they cannot circumvent paying a lesser amount by simply clicking the link on an older email. 

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Try our automated credit control management SaaS FREE today. 

No costs or upfront contracts simply create an account and start using all our cool features.

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