Karl Wilson, Partner and Litigation specialist at Marsden Rawsthorn believes that many businesses are delaying payment to assist with cash flow. However they are unaware of the penalties that can be enforced when a supplier takes action to recover late payments and often end up paying substantially more as a result.
"The Late Payment of Commercial Debts Act 1998 gives businesses the statutory right to claim interest on late payment in many circumstances, as well as an additional lump sum in compensation. Add to this the legal costs of defending a claim and the possibility that the late payer may end up paying the claimant’s legal fees and the penalty can be substantial" he commented.
Karl and his team are running a breakfast seminar for firms interested in debt recovery on Tuesday 28th April, to register please email@example.com.
Authorised and Regulated by The Solicitors Regulation Authority. Authority number 591294.
For details of the professional rules governing the conduct of solicitors go to www.sra.org.uk/code-of-conduct.page