| What are Late Payment Penalties? | ||||
| Late Payment Penalties | ||||
| These are given to you by law for late payment of your debts. To use them your debts must be "qualifying debts". | ||||
| What Debts Qualify? | ||||
| Click here to discover whether your business to business debts qualify for LPI and LPC. | ||||
| Late Payment Interest | ||||
| This is awarded at bank rate plus 8% (presently 13%) and payable from due date to payment date. | ||||
| Late Payment Compensation . | ||||
| This is payable on each late paid invoice as follows: | ||||
| Under £1000 | £40 (each) | |||
| £1000 to £10,000 | £70 (each) | |||
| Over £10,000 | £100 (each) | |||
| Example | ||||
| Customer owes 10 invoices. Each is under £1,000. LPC is 10 x £40 (i.e. £400). LPI on each invoice from due date to paid date is then added. Our site makes these calculations for any combination of invoices, credit notes and payments or part payments for you. Click here for a simple example of the difference correct calculation can make to you. | ||||
| Consumer Debts | ||||
| The Late Payment Directive expressly excludes consumers from the requirement that EC members should pay late payment penalties when they exceed agreed credit terms. However Debtclaims.com still calculates both the County Court interest payable on a consumer debt or bounced cheque and the court fees which will be payable in your Letter of Claim - so you can use them in a similar way in your letters as a payment incentive. | ||||