This piece is the second installment to ‘Small Business and the Small Claims Court (UK)‘.
As a signed-up member of the Better Payment Practice Campaign (BPPC) website, my first step was to visit their website to see what I was required to do in order to adhere to the The Late Payment of Commercial Debts (Interest) Act 1998. The BPPC have provided a ‘library’ of sample letters to help you get paid on time, including a letter informing a debtor that statutory interest and compensation for debt recovery costs will be charged on an existing debt. I have penned a draft letter to the debtor, which will be sent by registered post (as soon as I have definitive information of the cost and process of going to the Small Claims Court (SCC)).
The BPPC is an excellent source of information on the Late Payment Legislation.
Late Payment Legislation
‘In November 1998, the UK Government introduced legislation to give businesses a statutory right to claim interest from other businesses for the late payment of commercial debt. The UK was one of the first countries in the EU to introduce late payment legislation to help promote a culture of prompt payment.’
(Source: BPPC website)
Come back soon, as I’ll be posting the results of my research on the Small Claims Court process and the (real) costs involved.