Re: FN-FORUM: Charging interest for non paying client

date posted 21st April 2008 11:20

On 21/04/2008 12:44, Duncan Glendinning wrote:
> Good Morning,
>
> I know this has been talked about on a couple of occasions, but the
> forum archive on freelancers.net doesn't appear to be searchable.
> Anyhoo, what I am after is some advice. I have a very difficult
> client, who, despite being sent an invoice clearly stating 14 day
> payment terms has said that she will pay me when her client pays her.
> As far as I am concerned my getting paid has nothing to do when she
> gets paid, does it?
> The problem is that I do not have a proper contract (my bad, I know),
> so wonder whether I am entitled to charge her interest, and if so,
> what would the steps be (i.e informing her, setting the rate and
> potentially defending myself should this go to court).
>
> Also, for future reference, what clauses to you guys have to ensure
> they do pay on time?
>
> Regards,
> Duncan
>

I have the following on my invoices:

Payment must be made within 30 days of the invoice date shown. We
reserve the right to claim statutory interest at 8% above the Bank of
England reference rate in force on the date the debt becomes overdue and
at any subsequent rate where the reference rate changes and the debt
remains unpaid in accordance with the Late Payment of Commercial Debts
(Interest) Act 1998 as amended and supplemented by the Late Payment of
Commercial Debts Regulations 2002.

I'm sure 14 days isn't enough I think it's 30 days for businesses (the
acts mentioned above will tell you).

If it's an individual then you can't charge interest if I remember
correctly.

Martin