The Late Payment Commercial Debts Act
The Late Payment of Commercial Debt (Interest) Act of 1998 is a law in the United Kingdom. The act was established so small- and medium-size businesses (SMEs) could collect payments owed them and prevent overdue payments from turning into insurmountable debt.
Other People Are Reading
-
Services Covered and Time Tables
-
The act encompasses payments due from the sale of goods and services and the hiring of individuals for a specific function. The act allows interest to be accrued beginning on an agreed payment date, 30 days after the goods or services have been provided or 30 days after an invoice delivery.
Legal Action
-
The act does not require businesses to enforce its restrictions, but provides guidelines allowing SMEs to seek payment within a six-year bracket from the date of invoice delivery. Legal action to acquire payment needs a minimum of the unpaid invoice as physical evidence.
-
Amendments
-
The law was amended in 2002. Small businesses were then allowed to collect statutory interest payments from other small businesses.
-
