17 June, 2010
Lancashire Law firm Forbes Solicitors is advising companies to take action to overcome the problem of late payment.
A recent Late Payment Survey by the Chambers of Commerce North West found that over three quarters of respondents has never charged interest on late payment and only 13% had taken legal action to enforce the legislation.
Alison Nelson, Debt Collect expert at Forbes Solicitors comments, 'many businesses do not realise that interest and a late payment charge can be added to overdue debt, which can often cover the cost of instructing someone to collect the debt and is also a good deterrent against persistent late payers.'
There are measures that can be taken to minimise debt problems such as ensuring the correct credit control procedures are in place and taking action as soon as any payment terms are exceeded. However, should problems still be encountered, a simple letter from a Solicitor can often prompt payment and does not always have to sour the business relationship.