Late payment - have you ever collected interest?

[KM-Tiger]

There are probably a few here who have in their business T's & C's that they will charge interest on late payments.

Just curious - has anyone ever actually charged and got paid the interest?

[bwglaw]

There are probably a few here who have in their business T's & C's that they will charge interest on late payments.

Just curious - has anyone ever actually charged and got paid the interest?

Yes, we have. It states on our invoice that late payment will incur interest at 10% per month or part thereof. Clients have paid. Bear in mind our clients are large corporations, including government.

[sparklyscotty]

I charge £5 a month flat fee for overdue accounts. Payment terms are 30 days. I usually stick the charge on the reminder invoice and then put a note saying that I will waive it if paid promptly.
If it's over 60 days then I keep tacking on the charges and they pay. End of story.
Usually a reminder notice with a late/ interest charge prompt them into paying faster than an invoice without.
-Angel-

[KM-Tiger]

Thanks to both for your replies.

I operate in a niche industry where prompt payment is fortunately the norm, but lately I've encountered a few who are getting later and later.

I'm encouraged to start charging them!

[Admiral Collections]

Hi


Lots of companies have it in their terms and conditions and never charge it! Some compnaies charge 4% on top of the Bank of England base rate of 4.75%. Contacting a customer/client and telling them what they will actually pay if they continue to ignore terms usually works. If it doesn't PM me :)

Nic :wink: